Aldi is calling on Sir Keir Starmer to expedite planning permissions for new supermarket locations. Facing significant delays from local councils, Aldi’s expansion plans across the UK are at risk of falling behind schedule.
The supermarket chain’s push for faster planning approvals reflects broader frustrations within the retail sector. As competitors also face bureaucratic hurdles, Aldi emphasises the urgent need for planning reforms to support economic growth.
Aldi’s Meeting with Government Officials
George Brown, Aldi’s national real estate director, recently met with a senior adviser to the Prime Minister. He advocated for planning reforms to align with the Government’s goal to drive economic growth and ‘get Britain building again’.
Brown highlighted that securing planning consent for new stores often exceeds 12 months, attributing the delays to under-resourced local authorities. He proposed that Aldi invest in the application process to expedite approvals, emphasising the need for more streamlined and efficient decision-making.
Challenges in the Planning Process
Planning authorities appear to favour approvals for warehouses and industrial estates over supermarkets. Brown argues that these types of developments generate fewer local jobs compared to supermarket openings.
To unlock significant investment in the UK economy, Brown insists that these preferences need to change. With a target of reaching 1,200 stores by 2025, Aldi is currently behind schedule, with just over 1,020 locations due to planning red tape and other delays.
Impact of Delays on Expansion Plans
Aldi has broader ambitions to achieve 1,500 stores across the UK but has not set a specific timeline for this goal.
Delays in planning approvals, coupled with building material shortages and objections from competitors, have significantly slowed Aldi’s expansion and impacted sales growth.
The discussions with Starmer’s adviser are part of broader promises from the Prime Minister to prioritise construction projects, including those in the retail sector.
Wider Retail Sector Frustrations
Aldi’s situation highlights a wider frustration within the retail sector regarding the planning system. Competitors such as Waitrose, Lidl, and Iceland are also pursuing expansion plans but face similar bureaucratic challenges.
Richard Walker, managing director of Iceland, criticised planning delays as a ‘handbrake on growth,’ citing prolonged approval times that hinder store openings.
Walker also accused Aldi and Lidl of using restrictive property deal clauses to block Iceland stores from opening nearby. Both discounters have declined to comment on these allegations.
Planning Objections from Competitors
Aldi has countered that rival supermarkets are increasingly lodging planning objections to slow its 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 have denied any claims of filing unnecessary objections, maintaining that they only raise concerns when there are valid planning considerations.
Government’s Stance on Planning Disputes
The Government, including No 10, has declined to comment on the ongoing planning disputes. Despite this, there is a pressing need for planning reforms.
The challenges faced by Aldi and other retailers underscore the importance of a more robust and efficient planning system to facilitate growth and investment in the UK economy.
The Prime Minister’s commitment to enhancing the planning process is seen as a positive step towards mitigating these issues.
Future Prospects for Aldi
Looking ahead, Aldi remains determined to overcome these obstacles and continue its expansion across the UK.
The retailer’s emphasis on planning reforms and investment in the application process signifies its commitment to achieving its growth targets despite current bureaucratic challenges.
In conclusion, Aldi’s call for expedited planning permissions underscores the broader issues in the UK’s planning system. The retailer’s efforts to engage with government officials highlight the need for systemic changes to support economic growth and investment.
As Aldi and its competitors navigate these challenges, the importance of an efficient and effective planning process cannot be overstated. Rapid reforms are essential to facilitate retail expansion and boost the UK economy.
