FIVE grocery chains have agreed to end a practice which barred rivals from setting up in the same shopping centre. 

Retailers Aldi, Franklins, Spar, Foodworks and Metcash have agreed with the Australian Competition and Consumer Commission to immediately restrain from inserting restrictive provisions in new supermarket leases.

Existing leases are to be phased out over five years.

They follow similar agreements supermarket giants Coles and Woolworths made with the competition regulator in September 2009.

Federal Competition and Consumer Affairs Minister Craig Emerson said existing leases kept rivals out, denying consumers the benefits of competition.

"I am heartened by this development because consumers will be the winners when we have several supermarkets operating in the same precinct," he said in a statement.