Aldi has made a direct appeal to Keir Starmer, urging for expedited planning permissions as the retailer grapples with significant delays impacting its expansion plans in the UK.
The plea underscores a growing frustration within the retail sector, where bureaucratic hurdles are seen as major impediments to growth and economic investment.
A Call for Government Intervention
George Brown, Aldi’s national real estate director, recently met with a senior special adviser to the Prime Minister to advocate for planning reforms. Brown emphasised the alignment of these reforms with the Government’s agenda to boost economic growth and ‘get Britain building again.’
Brown highlighted on LinkedIn that obtaining planning consent for new Aldi stores often takes over 12 months due to under-resourced local authorities. He proposed that Aldi is prepared to invest in the application process to expedite approvals, stressing the necessity for more streamlined and efficient decision-making in retail development.
Additionally, Brown pointed out a preference among planning authorities for warehouse and industrial estate approvals, which he argues generate fewer local jobs compared to supermarket openings. ‘To unlock significant investment in the UK economy, this needs to change,’ he stated.
Current Expansion Status and Goals
Aldi has set an ambitious target to reach 1,200 UK stores by 2025 but is presently behind schedule, with just over 1,020 locations currently operational.
The retailer has also announced a broader objective of expanding to 1,500 stores, although no specific timeline has been disclosed for this goal.
Obstacles Faced in Expansion
Aldi attributes its delays to several factors, including planning red tape, shortages in building materials, and objections from competitors.
Such challenges have not only slowed down Aldi’s expansion but have also impacted its sales growth.
Industry-Wide Frustrations
The discussions with Starmer’s adviser come amidst broader promises from the Prime Minister to prioritise construction projects. Sir Keir has committed to ‘turbo-charging’ the planning process to enable swifter development of homes and commercial ventures.
Aldi’s push reflects a wider frustration within the retail sector over the existing planning system. Competitors like Waitrose, Lidl, and Iceland are also pursuing expansion plans and have voiced concerns about bureaucratic challenges hindering their progress.
Accusations and Counterclaims
Richard Walker, managing director of Iceland, criticised planning delays as a ‘handbrake on growth,’ citing prolonged approval times that delay store openings.
Walker has also accused Aldi and Lidl of using restrictive property deal clauses to block Iceland stores from opening nearby, a claim both discounters have declined to comment on.
Meanwhile, Aldi has countered that rival supermarkets are increasingly lodging planning objections to slow its own store openings. UK CEO Giles Hurley noted that the number of objections has risen as Aldi continues to offer a significant price gap compared to traditional supermarkets.
Supermarket Chains’ Responses
Supermarket chains have denied any claims of filing unnecessary objections, stating they only raise concerns when there are valid planning considerations.
The Government, including No 10, has declined to comment on the ongoing planning disputes.
Aldi’s appeal to accelerate planning permissions highlights a critical issue within the UK retail sector: bureaucratic delays that impede both expansion and economic growth.
The call for streamlined planning processes is echoed across the industry, signalling a need for urgent reforms to unlock significant investment and job creation.
