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IREU Top500 The Customer Report: 2018

IREU Top500 The Customer Report: 2018

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Domino's Pizza says its app is now its biggest sales channel

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Pizza buyers are flocking online to order – but the desktop site is no longer their first port of call. Rather, hungry customers are now turning to the mobile app to order.

Domino’s Pizza UK & Ireland today said that its app had overtaken desktop for the first time to become its most widely-used sales channel. Some 51.6% of all online sales were placed via the Domino’s app in the first half of its financial year.

The pizza delivery company said ecommerce sales in the first half of its financial year were 24.4% ahead of the same time last year. Total system sales of £426.7m in the 26 weeks to June 28 were 14% ahead of the same time last year, while UK like-for-like sales of £378.8m were 10% ahead.

Chief executive David Wild said: “Our success in the UK is a result of the investment we have made in market-leading ecommerce initiatives. Our app has now been downloaded over 10m times and our app sales have overtaken desktop sales for the first time.”

The company invested an extra £1.4m in ecommerce in the first half, compared to the same time last year. A key focus was on simplifying the ordering process so that consumers can buy through a few clicks. Saved payments have also been introduced. Work will continue to upgrade the customer experience, with responsive design introduced in July 2015 in order to improve usability. Soon shoppers will also be able to saved their favourite baskets as Domino’s moves towards the “ultimate aim” of ‘one touch’ ordering.

Ecommerce now represents 77% of all UK delivered sales, up from 69.7% in the previous six months. UK online orders were 21.8% ahead in the first half, with average order value 2.1% ahead. Orders placed via an app grew by 63.3%, with order value 2.5% ahead.

Looking to the future, Wild said: “We have a continued programme of ecommerce initiatives and other marketing campaigns. The UK new store pipeline is solid and we are well-positioned for the future.”

Offline, the company opened 21 new UK stores during the first half, and expects to open at least 50 in the full-year. The company said a four service station-based outlets, launched as a trial in 2013, had been closed since they did not prove popular with customers.

Domino’s Pizza UK & Ireland also operates in Germany, Switzerland as well as the UK and Republic of Ireland. In Ireland, online sales grew by 29.2% in the first half to represent 51% of delivered sales, while the app accounts for 59.8% of online sales. Sales at its German and Swiss businesses are growing but at the bottom line they are still loss-making.

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