Gourmet pizza eaters boost Domino’s

Domino’s Pizza said the launch of a new ‘gourmet’ range backed by adverts in ITV game show Red or Black has helped to boost sales.

The delivery firm, which has 702 outlets in the UK, Ireland and Germany, increased advertising spending in the 13 weeks to September 25.

It also signed a deal with Channel 5 to allow it to sell a Big Brother-designed pizza.

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The marketing investment paid off as like-for-like sales in the UK increased 4.1 per cent in the quarter, up from 3.4 per cent in the first half of the year.

The “well received” gourmet range, developed to win over more middle-class customers on bigger budgets, was launched in July alongside a new stuffed crust pizza.

Domino’s said like-for-like sales for the group were ahead 2.9 per cent as trading remained tough in Ireland, where same-store sales dropped 4.4 per cent.

The company said its online presence has continued to grow, with e-commerce now accounting for 46.6 per cent of UK delivered sales in the 13-week period, while total online sales grew 36 per cent to £45m.

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The group said it had seen strong growth in mobile ordering, buoyed by the release of its iPad app.

Orders taken on mobile platforms, including phones, accounted for 13 per cent of all e-commerce.

The company opened 15 new stores in the UK, Ireland and Germany, in the period.

It is on track to open 64 new stores this year, including 60 in the UK.

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Chief executive Chris Moore, who will step down in the next quarter, said: “Although the economy is still very tough, we have got exciting plans in place for the rest of the year.

“We are on track and confident that we will finish the year in line with market expectations.”

Mr Moore will be replaced by Lance Batchelor, head of Tesco Mobile, at the start of the next financial year.