Domino’s takes a bigger slice from the online market

The group said like-for-like sales were 6.1 per cent higher in the 13 weeks to June 30, despite strong comparatives from a year ago when Euro 2012 was underway.

E-commerce accounted for 63 per cent of UK delivered sales over the first half of the year, up from 52 per cent a year earlier as the company continues to develop its digital marketing through platforms such as smartphone apps.

Chief executive Lance Batchelor said he was “very pleased” with current trading in the UK and Ireland, adding: “With the majority of our business coming via web and mobile platforms, we are now truly an online retailer.”

Despite his optimism, shares fell 7 per cent yesterday after the company said losses from its fledgling operation in Germany will be up to £3m more than originally thought as it switches corporate-run stores to franchisee management. Domino’s has 825 outlets in Europe, the majority of which are run on a franchisee basis. There are 25 stores in Germany after an acquisition in April 2011.

It said: “Just as they did in the early days of our UK operations, our corporate stores in Germany have played a key role in helping us develop our products and services in a new market.

“However, they significantly lag the performance of the franchised stores and, by contrast, are running below budget.”

Mr Batchelor said: ““It is time to drive our German expansion using our tried and tested franchise model. We are excited about the future in this fledgling territory.”

Domino’s has previously said the German business could eventually outgrow its core British arm.

In the UK, the group will open a similar number of new stores to last year – around 55 on a net basis – despite only opening 15 in the first half of this year.

There are 739 outlets in the UK.