Surrounded by industrial lots and factory buildings, billionaire Adrian Portelli’s latest venture stands out as an unlikely beacon: a brightly branded supermarket.
Portelli, whose profile has been built on publicity stunts and cash giveaways, has opened the LMCT+-branded store in Deer Park, about 25km west of Melbourne. The area is known for vacant industrial land and a notorious women’s prison.
Called LMCT+ Market, the business is being promoted as a challenger to Coles and Woolworths. It promises savings of up to 10 per cent on many products as Australians continue to grapple with the rising cost of living.
‘It’s day one of the supermarket and it’s fair to say that I’m bored. I’m coming in absolutely swinging, it’s time to stop playing games,’ Portelli said in a video.
The Daily Mail visited the former IGA site, which has been transformed with blue-and-white advertising and a deflated hot-air balloon left over from the grand opening.
Shopping there comes with an unusual condition: customers must scan a membership barcode connected to Portelli’s subscription service before they can enter, creating a markedly different experience from a conventional supermarket.
Customers who had not yet joined could sign up at several kiosks or a staffed service desk near the entrance. A large screen nearby played polished promotional footage featuring Portelli.
Membership costs $99 a year when paid upfront, covering access to the ‘petrol saver’ fuel and market discounts. The top-tier annual ‘elite’ membership costs as much as $999.
Billionaire Adrian Portelli opened his latest venture, a LMCT+-branded supermarket in Deer Park (pictured)
Portelli has linked the supermarket membership to his discounted fuel servo at Preston (above)
The Daily Mail visited the store to compare its grocery prices with Coles and Woolworths
Once the automated gate opened, the Daily Mail entered aisles that looked much like those found in supermarkets across Australia.
Aside from the prominent advertisements for Portelli’s subscription service on the entrance kiosks, there was little to set the store apart from its established rivals.
The compact supermarket was clean and orderly, with well-stocked shelves and fresh produce displayed throughout.
Its range, however, appeared to straddle both value and luxury offerings. Shoppers could find Tim Tams and strawberries for $2.90, alongside Wagyu burgers costing $18 per patty and imported Greek olive oil priced at $42.
That raises the key question for everyday shoppers: how competitive is LMCT+ Market when it comes to replacing regular pantry staples?
Bread: A Just Wholemeal Loaf was priced at $3.70 at LMCT+, compared with $4 at both Coles and Woolworths, according to their websites.
Milk: A two-litre bottle of The Milk Guys Farm Fresh Full Cream Milk cost $3.20 at LMCT+. Coles and Woolworths do not list that brand online, but comparable products were more expensive: Coles had Devondale Full Cream Milk on special for $4.20, while Woolworths listed a two-litre Dairy Farmers Full Cream Milk special at the same price.
Eggs: A 12-pack of Sunrise Eggs Free Range XL cost $5.75 at LMCT+, compared with $7.40 at Coles. Woolworths does not stock Sunrise, but sells a similar 12-pack of Open Range XL eggs for $7.40.
Some products were cheaper than at Coles and Woolworths, while prices on others were broadly comparable
During a visit, there were as many customers in the shop as there were staff stocking shelves
The store stocks a mix of discounted staples and premium products, including wagyu beef burgers for $18 per patty
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Beef: Premium mince, wrapped in air-tight 1kg packages at LMCT+ costs roughly $13, a small discount compared to the retail giants which offered their own brand of 1kg beef mince for $15 each.
Chicken: About 567g of breast fillets cost $8.51 at Portelli’s store, compared to Coles RSPCA Approved Chicken Breast Fillets, sold for $8.70 for approximately 600g, and Woolworths RSPCA Approved Chicken Breast Fillets weighing 650g costing $9.50.
Bananas: A kilogram at LMCT+ cost $3.99, while Coles sells a bananas mini pack of 750g at $4.90. Woolworths sells Cavendish bananas at $0.81 each, so for four bananas a customer would pay $3.24.
In short, savings are small and dependent on the deals of the day.
LMCT+ appeared to have almost no own brand items – a significant selling point of Coles and Woolworths – apart from the independently bagged mince or 600ml bottles of ‘artesian spring water’ for $1.99.
The supermarket opened earlier this month and, on a first visit on October 15, staff vastly outnumbered customers. During a second trip on October 25, the numbers were equal.
‘It’s been like this all day. I was surprised when I started on Tuesday that it’s not as busy as I thought it might be,’ a shop worker told the Daily Mail as only a handful of customers moved through the aisles.
He said an ‘obstacle’ to attracting people was the membership requirement, with some shoppers ‘unwilling’ to sign up.
LMCT+ appeared to have limited own-brand items, a selling point of Coles and Woolworths
The store is compact, neat and clean, with shelves stocked and arranged with precision
Portelli converted an IGA into his first supermarket
‘I think the prices are pretty good, but we need more variety,’ he added.
At the rear of the supermarket, the dingy entrance to the store’s warehouse is visible from the pothole-ridden road.
Three dumpsters were overflowing with cardboard and rubbish, while used crates and pallet bases sat outside a loading dock.
Portelli is right to go after the big two supermarkets but, given the price comparisons to Coles and Woolworths, he may not have come out ‘swinging’.
He has acknowledged competing with the big two will be a ‘challenge’ due to their significantly greater buying power.
He also told followers some Coles and Woolworths prices would be ‘difficult to beat’ given the thousands of products stocked across their networks compared with his single supermarket.
Portelli remains confident his supermarket model will push ahead with a roll-out of his chain across Victoria.
Membership for the supermarket is also linked to Portelli’s LMCT+ service station discounted petrol deal.
In short, savings are dependent on the deals of the day, such as $2.90 for TimTams
The produce looked fresh and staff diligently kept stock moving from the back to the store