A judge dismissed an appeal against Lidl being granted a provisional licence to operate a bar inside its Dundonald store in County Down.

The appeal, brought by competitor Philip Russell Ltd, argued that Lidl had not proven an insufficient number of licensed premises in the area.

However, Mr Justice Colton ruled that “the fact that the application was a novel one is not a reason for refusing it.”

Lidl first secured planning permission for a taproom at the Dundonald location in 2020. The plan involves striking an agreement with a local bar owner to surrender their licence and investing £410,000 in setting up a new in-store pub alongside an off-sales area.



Under Northern Ireland’s licensing laws, new alcohol licences can only be granted if an existing one is given up. Lidl had previously been denied permission for an off-licence at the store but has now stated its commitment to running a profitable pub if the new application is approved.

Philip Russell Ltd, which operates multiple off-licences across Northern Ireland, objected to Lidl’s plans. It claimed Lidl had failed to prove a lack of licensed premises in the vicinity, as required under the Licensing (Northern Ireland) Order 1996. The company also argued that Lidl was attempting to bypass regulations by effectively reapplying for an off-licence.

However, Mr Justice Colton ruled that Lidl had successfully demonstrated the necessary inadequacy. He noted that, if approved, the new premises would be the only licensed venue in an area that previously had two pubs. The judge also pointed out that the store is located in a growing shopping and transport hub with an increasing adult population.

“While the proposed premises may not fully meet demand due to its size and lack of food provision, that does not mean Lidl has failed to establish inadequacy,” he said.

Dismissing the appeal, the judge concluded that Lidl had made a legitimate application for a public on/off-licence.

“It is committing at least £410,000 to fitting out the public house,” he said. “I accept that Lidl expects the pub to be profitable, understanding that if it were to close due to lack of profitability, the off-licence permission would also lapse.

“I am satisfied that Lidl meets the statutory requirements, and there is no valid reason to refuse the application.”