German supermarket chain Lidl has secured legal approval to establish its first pub in Northern Ireland, overcoming a challenge from Belfast-based wholesaler and off-licence operator Philip Russell Limited.  

The High Court's decision paves the way for a new venue that will cater to 45 patrons within a Lidl store in Dundonald, near Belfast. 

Lidl plans to invest a minimum of £410,000 to set up the pub. 

The new taproom at the rear of the supermarket will feature a bar area with seating for six customers.  

Philip Russell Limited operates several off-licences in Northern Ireland including those close to the proposed Lidl site. 

Accusing the supermarket chain of failing to support its claim that there were not enough other licensed premises in the vicinity, Philip Russell Limited added this was “an impermissible attempt to circumvent the 1996 Order”. 

The 1996 order that governs liquor licensing in Northern Ireland includes a stipulation that prohibits issuing new alcohol sales licences unless an existing one is surrendered. 

However, Justice Adrian Coltonb noted in his ruling that although the idea of licensed premises within a supermarket is a recent innovation, the limitations outlined in the 1996 order do not necessarily hinder innovation or the introduction of new methods for operating licensed establishments and added that Lidl had established the necessary inadequacy.  

He noted that if the application is approved, there will be a single licensed venue in an area where two pubs were previously located.  

The new premises would be situated in the heart of a neighbourhood with several shopping and transportation options and a rising population. 

Justice Colton also stated that Lidl had made a bona fide application to run the premises as a public on/off-licence. 

Lidl ventured into the Northern Irish supermarket segment in 1999 and now has more than 40 sites.  

It operates 800 supermarkets across England, Scotland and Wales.