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Lidl wins legal battle to open its first-ever pub

The High Court has paved the way for Lidl to open the in-store pub in County Down near Belfast

Jabed Ahmed
Wednesday 29 January 2025 15:00 GMT
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An appeal against the retailer's temporary permit to operate a bar within its Dundonald, County Down, store was denied by a judge
An appeal against the retailer's temporary permit to operate a bar within its Dundonald, County Down, store was denied by a judge (PA Wire)

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A legal win has cleared the way for discount supermarket Lidl to open its first pub inside one of its stores after the High Court rejected a challenge to the proposal.

An appeal against the retailer's temporary permit to operate a bar within its Dundonald, County Down, store was launched by the owner of several off-licences in Northern Ireland, but the legal bid was denied by a judge.

Philip Russell Ltd filed the appeal, claiming Lidl had not demonstrated that there were insufficiently licensed establishments close to the location.

Lidl obtained planning approval in 2020 to build a tap room on their Dundonald site, which is located just outside of Belfast.

The suggested plan called for investing £410,000 in a new in-store pub and an off-sales section, as well as coming to an agreement with the owners of a nearby bar to give up that licence.

No new alcohol-selling licenses can be issued in Northern Ireland until an existing one is surrendered, according to licensing regulations.

After being turned down for an off-licence at the shop several years earlier, Lidl has stated that should the fresh application be accepted, it was committed to operating a bar.

A legal win has cleared the way for Lidl to open its first pub
A legal win has cleared the way for Lidl to open its first pub (Getty Images/iStockphoto)

Philip Russell Ltd argued that Lidl had failed to show there were "inadequate licenced premises" near the site as required under the Licencing (Northern Ireland) Order 1996.

It was also alleged to be an impermissible attempt to circumvent the legislation by effectively making another application for an off-licence.

Ruling on the dispute, Mr Justice Colton determined that Lidl had established the necessary inadequacy.

He pointed out that if the application is successful, there will be only one licensed premises in a vicinity where two pubs previously operated.

The planned new location would be in the middle of a neighbourhood with well-established retail and transportation options as well as a growing adult population.

"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."

Dismissing the appeal, Mr Justice Colton held that Lidl had made a bona fide application to operate the premises as a public on/off-licence.

"It will invest a significant sum of money, at least £410,000 into fitting out the public house," he said.

"I accept that it has concluded that the public house will be profitable, knowing that if it closed through lack of profitability an evitable consequence would be that the off-licence permission would lapse following any such decision.

"I am satisfied that it meets the statutory requirements and there is no good reason for refusing the application."

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