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IREU Top500 The Customer Report: 2018

IREU Top500 The Customer Report: 2018

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Domino's sales grow fast as customers take their orders online

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Domino's Pizza this week reported its fourth successive quarter of double-digit sales growth as more customers ordered online and by mobile.

The pizza company said the fact that customers spent more when they ordered over the internet, together with its promotion of meal deals and a general economic improvement, all added up to 17.6% growth in its primary UK market in the third quarter, the 13 weeks to September 28, when system sales reached 165.7m. Like-for-like sales were up by 12.9%. In the year to date, like-for-like sales were up by 11.8% at £510.3m.

During the latest quarter, 70.9% of UK delivered sales were ordered online, up from 62.4% at the same time last year. Of those, 49.3% were ordered via mobile.

Chief executive David Wild said in today's third quarter trading statement: "We are building on our success online with the rollout of our new website and a series of enhancement to continue to make it easy for our customers to order Domino's."

Growth was less strong in the Republic of Ireland, where like-for-like sales grew by 5.3% in the quarter and 4% in the year to date. In Switzerland, like-for-likes were up by 7.6% in the quarter and 4.3% in the year so far, but in Germany, where the company now has 11 owned and 11 franchised stores, like-for-like sales fell by 9.9%, and by 4% in the year so far.

Wild said: "The transformation of our business in Germany is continuing, with reductions in delivery areas and local marketing spend, and a focus on pizza quality and operational effectiveness. As indicated at the half year, we have mothballed several underperforming stores."

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