Lidl wins High Court battle over plans to open its first-ever pub in Northern Ireland

A judge dismissed an appeal against the German retailer being granted a provisional licence for operating a bar within its store in Dundonald.

Mr Justice Colton rejected claims by rival trader Philip Russell Ltd that Lidl had failed to show there are inadequate licensed premises in the vicinity.

Recognising the uniqueness of transforming part of a supermarket into a pub, he said: “The fact that the application is a novel one is not a reason for refusing it.”

In 2020 Lidl secured planning permission for a tap room on the Dundonald premises.

The proposed scheme involved reaching agreement with the owners of a local bar to surrender that licence and spending £410,000 to fit out a new in-store pub alongside an off-sales area.

Years earlier the retailer had been denied permission for just off-licence in the store.

However, Lidl insisted it was now determined to run a profitable pub if the new application was successful.

An objection to the plans was raised by Philip Russell Ltd, who run several off-licences across Northern Ireland.

The drinks trader claimed Lidl had failed to establish an inadequacy 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 proposed new premises would be in the centre of an area with established shopping and transport facilities, along with an increasing 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.”