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Domino’s Pizza reports fast growth in digital sales

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Domino’s Pizza reported fast-growing digital sales in its latest financial quarter, a period that included its biggest online sales day yet in the UK, when it saw 140 pizzas ordered every minute.

The fast food trader said it saw an “acceleration in digital” in its third quarter, the 13 weeks to September 24, with UK online sales up by 17.4% – representing 75% of UK sales. Group system sales grew by 20.8%, while UK sales were up by 11.6%, and like-for-like sales by 8.1%.

Chief executive David Wild said the company was pleased with its third-quarter performance, especially in the UK.

“In the UK, consumers are uncertain and they continue to focus on value,” he said. “Our commitment to growth remains undiminished as does that of our franchisee partners. We expect to launch a record 90 stores in the UK this year, with an encouraging pipeline already in place for openings in early 2018. More recently we have seen a real surge in digital engagement, with our new advertising campaign, ‘The Official Food of Everything’, driving a record 200,000 online orders – or 140 a minute – on the last Saturday in September. The Board reaffirms that its forecasts for full year underlying profit before tax remain at least in line with market expectations.”

In the UK, Domino’s bought a 75% stake in a London franchisee business of 25 stores. “The venture gives us a platform for accelerated growth in the most important market in the UK, and we expect to increase the store portfolio from 25 to around 40 over the medium term.”

In the Republic of Ireland, sales grew by 13.1%, as online sales grew by 30.9% to represent 58% of total sales.

The group also operates in Switzerland, where online sales grew by 69.6% to account for 61% of total sales, and total sales grew by 25.1%. Sales “accelerated strong” as menu prices reduced. It also operates in Iceland, where it says it has average weekly sales per unit that are higher than anywhere else in its network, Norway and Sweden.

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