Irish sales slump puts a brake on Domino’s Pizza growth

The company said like-for-like sales in its 48 stores in the Irish Republic reduced by 10.5 per cent in the 13 weeks to March 27, while its stores in the UK saw sales increase by 5.5 per cent.

The group, which has 672 stores in the UK and Ireland, said overall like-for-like sales growth had fallen to 4.2 per cent from 10.5 per cent a year ago.

Earlier this year, Domino’s revealed that sales in the first seven weeks of its financial year had slowed to 4.7 per cent, bringing an end to its run of double-digit growth, but yesterday’s figures represent a further worsening in trading.

The group also warned that future growth is likely to be impacted as it comes up against tougher comparatives in the next quarter.

Its Ireland business is being hit by a fall in consumer spending caused by the economic setback.

The results are the first time it has provided separate sales figures for the UK and Ireland – in a bid to show investors that the UK business, which represents 93 per cent of sales, is still in growth.

Total store sales, increased 11.2 per cent to £132.3m.

But Domino’s claimed it was well placed to deal with the challenging environment, with plans to open new stores and fresh marketing initiatives up its sleeve.

The group opened eight stores in the quarter and said it is on target to open 60 in the year.

The group’s strong growth last year was helped by the introduction of its buy-one-get-one-free promotion. It also benefited from the football World Cup last summer, as fans ordered a pizza to watch the games on television, while the snow, and hit TV shows such as The X Factor and Strictly Come Dancing, provided a boost to takeaway demand at the end of 2010.

Internet sales now make up 39.3 per cent of its sales.