Lidl Wins High Court Battle for First Pub in Dundonald Store.

Lidl has successfully secured legal approval to open its very first pub inside its Dundonald store in Northern Ireland, marking a significant moment for the German supermarket chain. A High Court judge ruled in Lidl’s favour, dismissing an appeal from rival traders who had challenged the retailer’s application for a provisional licence.

The legal challenge was brought by Philip Russell Ltd, a company that operates several off-licences across Northern Ireland. They argued that Lidl had not sufficiently demonstrated the need for an additional licensed premises in the area. However, Mr. Justice Colton, who presided over the case, ruled that Lidl had met the necessary criteria, and the appeal was rejected.

“The fact that the application is a novel one is not a reason for refusing it,” stated Mr. Justice Colton in his ruling, recognising the uniqueness of Lidl’s proposal to convert part of a supermarket into a pub. His comments highlight the pioneering nature of this venture, which combines retail and hospitality in a fresh and innovative way.

In 2020, Lidl had already obtained approval to establish a tap room at its Dundonald location. The plan, which involved negotiating with local bar owners to relinquish their licences, was part of a broader effort to revitalise the area and create a new public space within the store. Lidl has committed to investing £410,000 into transforming the store and creating a combined on/off-licence section that includes a new pub.

The opposition from Philip Russell Ltd, which operates multiple off-licences across Northern Ireland, claimed that Lidl had failed to show an inadequacy of licensed premises in the Dundonald area, as required under the Licensing (Northern Ireland) Order 1996. However, Mr. Justice Colton found Lidl’s argument to be compelling, ruling that the area’s lack of licensed establishments justified the creation of the new pub.

“It may well be that it will not meet the full demand for licenced premises within the vicinity given its size and lack of food provision,” the judge said. “That however does not mean that [Lidl] fails to establish inadequacy.”

In his ruling, Mr. Justice Colton also acknowledged the potential impact of Lidl’s investment in the pub. He noted that the retailer had committed a significant sum of money into the project: “It will invest a significant sum of money, at least £410,000 into fitting out the public house.”

Despite the potential challenges, the judge recognised the commercial viability of Lidl’s plans. “I accept that it has concluded that the public house will be profitable, knowing that if it closed through lack of profitability an inevitable consequence would be that the off-licence permission would lapse following any such decision."

Mr. Justice Colton concluded that Lidl had met all statutory requirements for the application, and he saw no valid reason to refuse the request. “I am satisfied that it meets the statutory requirements and there is no good reason for refusing the application.”

This ruling represents a significant victory for Lidl, which has demonstrated its commitment to bringing a new, innovative retail experience to Northern Ireland. The planned pub at Dundonald will be an exciting addition to the area, providing a new venue for local residents and shoppers to enjoy. With the approval now secured, Lidl will move forward with its ambitious project, potentially setting a precedent for future supermarket-based pubs across the UK and Ireland.

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