Aldi is advocating for expedited planning permissions as delays hinder its UK expansion goals.
- George Brown from Aldi highlights prolonged planning processes, taking over a year for new store approvals.
- Aldi is willing to invest in the application process to speed up planning approvals amid increasing bureaucratic challenges.
- Objections from competitors and preferences for industrial developments over supermarkets are further slowing progress.
- Aldi aims to meet its target of 1,200 UK stores by 2025 but is currently lagging behind.
Aldi’s national real estate director, George Brown, has brought attention to the challenging planning permission processes that the retailer is facing in the UK. In an effort to streamline these processes and stimulate economic growth, Brown met with a senior advisor to the Prime Minister. Brown’s concerns were expressed on LinkedIn, where he emphasized the cumbersome nature of securing planning consents that often take over a year due to under-staffed local authorities.
In a bid to accelerate the planning approval process, Aldi has shown readiness to invest in the application proceedings. This move is a strategic attempt to counteract the inefficiencies in the current system that favors industrial estate developments over supermarkets. Brown argues that supermarkets generate more local employment opportunities compared to warehouses, a factor that should be considered in planning decisions.
Aldi has ambitious plans to expand its reach to 1,200 stores across the UK by 2025. This goal, however, has been hampered by planning red tape, shortages in building materials, and competitor objections, causing delays and affecting sales growth. Despite setting an even broader target of 1,500 stores, no specific timeline has been disclosed.
The issues brought forth by Aldi are part of a broader challenge faced by the retail sector, with other chains like Waitrose, Lidl, and Iceland experiencing similar bureaucratic delays in their expansion plans. Richard Walker, managing director of Iceland, described these planning delays as a ‘handbrake on growth.’ There have also been accusations of supermarkets using restrictive property clauses against each other, intensifying the competitive landscape.
Aldi has countered the notion of unnecessary objections by competitors, attributing the increase in objections to the significant price advantages that it offers customers compared to traditional supermarkets. Meanwhile, the UK government, including Downing Street, has refrained from commenting on these ongoing planning issues.
Aldi’s strategic push for regulatory reforms highlights the need for efficient planning processes to support retail expansion in the UK.
