Aldi is pressing Sir Keir Starmer to speed up planning permission processes for new stores as the retailer faces lengthy approval times from local councils.
George Brown, national director of property at Aldi, recently met with a senior special adviser to the prime minister, pushing him to make reforms in line with the government’s agenda to drive economic growth and “build Britain back together”.
Brown voiced his concerns on LinkedIn, highlighting that securing planning approval for new Aldi stores often takes more than 12 months due to a lack of resources from local authorities. He suggested that Aldi should be prepared to invest in the application process to speed up approvals, stressing the need for more streamlined and efficient decisions on retail development.
Brown also pointed to planning authorities’ preference for warehouse and industrial zone approvals, which he said generated fewer local jobs than supermarket openings. “To unlock significant investment in the UK economy, this must change,” he said.
Aldi has set a target of 1,200 stores in the UK by 2025 but is currently more than 1,020 sites behind schedule. The retailer has also announced a broader target of 1,500 stores, although no specific timetable has been given. Aldi blames planning bureaucracy, shortages of building materials and objections from competitors for the delays, factors that have slowed its expansion and impacted sales growth.
The discussions with Starmer’s adviser come amid wider promises from the prime minister to prioritise building projects. Sir Keir recently pledged to speed up the planning process to facilitate the rapid development of homes and businesses.
Aldi’s efforts reflect a wider frustration within the retail sector with the current planning system. Rivals Waitrose, Lidl and Iceland are also pursuing expansion plans and have been vocal about the bureaucratic challenges they face. Iceland’s managing director Richard Walker has criticised planning delays as a “stymie on growth”, citing lengthy approval times as hampering store openings.
Walker also accused Aldi and Lidl of using restrictive ownership agreement clauses to prevent Iceland stores opening near them, a claim both stores declined to comment on. Meanwhile, Aldi has responded that rival stores are increasingly lodging planning objections to slow down its store openings, with UK chief executive Giles Hurley saying the number of objections had risen as Aldi continued to offer a significant price gap to traditional stores.
The supermarket chains have denied any allegations of unnecessary objections, saying they only raise concerns when there are valid planning considerations. The government, including No 10, has declined to comment on ongoing planning disputes.