Billionaire's New Supermarket Requires Membership, Faces Initial Scrutiny
Adrian Portelli's LMCT+ Market aims to challenge established grocery giants but faces questions about its value proposition and customer traffic.
Billionaire Adrian Portelli has launched his latest venture, a supermarket branded LMCT+ Market, in Deer Park, a suburb west of Melbourne. Portelli, known for publicity stunts and cash giveaways, has positioned the store as a competitor to major Australian supermarket chains Coles and Woolworths, promising discounts of up to 10% amid rising cost-of-living pressures.
Membership Requirement
Unlike traditional supermarkets, entry to LMCT+ Market requires customers to scan a membership barcode linked to Portelli's subscription service. Annual membership fees start at $99 for a basic tier, which includes fuel and market discounts, and can extend up to $999 for an 'elite' level. This membership model has been cited by a store worker as a potential obstacle, with some shoppers reportedly unwilling to sign up.
Product Variety and Pricing
During initial visits, the store was noted for its clean and tidy appearance with well-stocked shelves. However, the variety of products has drawn comment, with the store offering a mix of discounted staples alongside premium items. Comparisons with Coles and Woolworths show that savings on everyday items like bread, milk, eggs, beef, chicken, and bananas are often modest, varying with daily deals. For example, a loaf of bread at LMCT+ was priced at $3.70 compared to $4 at major retailers. A two-liter bottle of milk was $3.20 at LMCT+, while comparable options at Coles and Woolworths were around $4.20.
The supermarket appeared to stock few own-brand items, a significant feature of Coles and Woolworths offerings. The range included items such as Tim Tams for $2.90, strawberries for $2.90, Wagyu burgers at $18 per patty, and imported Greek olive oil for $42.
Customer Traffic and Future Outlook
On opening days, customer traffic was notably low, with staff often outnumbering shoppers. One employee expressed surprise at the lack of business, attributing it partly to the membership requirement and a desire for greater variety. Portelli has acknowledged the challenge of competing with the established supermarket giants due to their significant buying power and broader product selections.
Despite these initial observations, Portelli remains optimistic about his supermarket model and has indicated plans for a rollout of the chain across Victoria. The LMCT+ membership also integrates with Portelli's discounted fuel service.