Domino’s like-for-like sales up 6.6% in Q1
Domino’s Pizza has reported making a solid start to the year as like-for-like sales in its UK stores rose 6.6% in the first quarter.
In the 13 weeks to 31 March 2013, system sales rose 12.3% to £164.1 million boosted by strong like-for-like sales growth despite the disruptive impact of the snow early in the quarter.
Domino’s said the increase was driven by sales of new products, a successful short-term price led promotion and some weaker comparative figures due to warmer weather last year.
Like-for-like sales, in Euros, in the Republic of Ireland rose 8.1%.
Never Miss a Retail Update!During the quarter, the company continued to grow its online trade with 61.9% of all UK delivered sales being made via the internet compared to 49.8% in the same period last year. Sales taken through all online platforms were up 38.4% to £82.4 million with 25.2% taken through a mobile device compared to 16.4% last year.
Domino’s opened seven new stores in the period including five in the UK and two in Germany. The company aims to open 60 new stores in the UK and 18 in Germany this year.
Domino’s said that like-for-like sales, in Euros, in the company’s six mature stores in Germany made “encouraging” progress from a low base, rising 40.3% in the quarter. Like-for-like sales, in Swiss Francs, in the 10 mature stores in Switzerland increased by 9.3%.
Lance Batchelor, chief executive, said: “New product launches, a relentless focus on service, industry leading digital and online technology, an ever growing marketing budget, and a healthy pipeline of new sites are just some of the ways we continue to drive this terrific business forward.
“We know that the ongoing economic pressures are leading to a tough trading environment and we have extremely tough comps in the second quarter to overcome as well as food cost increases coming through during the year, but, with first class franchisees and a strong head office team, I expect, at this early stage in the year, that trading will be in line with market expectations for 2013.”
