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Domino’s Pizza Group reports 91% of sales online and plans to grow collection faster than delivery

Domino's wants to see more pizzas collected rather than delivered. Image courtesy of Domino's Pizza Group

Domino’s Pizza Group says it’s now a “truly digital-first business”, with 91.2% of its sales taking place online, and 42% of system sales via its new mobile app.

In its latest financial year, pizzas were delivered, it says, in an average of 25 minutes, while collections now stand at 87% of 2019 levels – having fallen during pandemic lockdowns. Orders grew by 5.5% on last year, as the retailer opened 31 new shops and aims to open at least 45 in the current year – on top of its year end total of 1,227.

In the UK alone, online sales grew by 13% to account for 91.9% of system sales, and 96.4% of delivery sales. Domino’s growing in car collection service will be expanded to about 500 shops by the end of this year. “Our aspiration,” says Domino’s Pizza Group, “is to grow our collection business faster than delivery and double our market share in the UK collection market in the medium term.”

The pizza delivery company has now moved out of its former European markets to focus instead on its domestic UK and Ireland business, and has opened a new joint venture in Northern Ireland.

Domino’s Pizza Group today reported sales through its system of £1.5bn in the year to December 26 2021. That’s 11.2% up on the same time last year, while group revenue of £560.8m is 11% ahead of last time. Pre-tax profits reached £113.9m at the top line, with one-off costs of £4.2m taking that to a bottom line £109.7m.

In December it reached an agreement with its franchisees that will include a £20m investment in digital acceleration, from personalisation to developing ecommerce apps and innovating in store to drive growth. It will also invest in marketing for new national campaigns, while offering an improved food rebate mechanism for franchisees in order to encourage order growth, while new store openings are also rewarded.

Domino’s chief executive Dominic Paul says the year was a transformational one for the business. “There were two major milestones in the year,” he says. “First, the launch of our new strategy, which is already delivering outstanding results and a better experience for our customers. Secondly, the resolution with our franchisees which has unlocked further potential within the system. Our franchisees are world class operators and the whole team is already embracing a new era of collaboration, with the system working together more closely than ever before.

“This year has started well, and we now have the right strategy and a strong senior team in place to continue to drive the business forward. We remain focussed on accelerating the sustainable growth of our system together, to deliver a better future through food people love.”

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