Online sales bolster Domino's Pizza results

Online sales are the highlight of Domino's results

Financial results at Domino’s Pizza were a bright spot in the otherwise gloomy conditions of the retail sector, largely due to its positive performance in the online channel.

The food retailer saw an increase of 19.5 per cent to £170.2m for the 26 weeks ended 29 June, compared to last year’s figure of £142.5m. Profit before tax also increased by 32.7 per cent to £10.9m, compared to the £8.2m reported in 2007.

Total sales via Domino’s online platforms reached £25.3m, representing an increase of 85.1 per cent on the £13.7m reported last year. The company says its e-commerce operation now accounts for 21.8 per cent of delivered pizzas sold in the UK (in 2007 it held a 16 per cent market share) and generates a “higher than average” ticket value.

Last year, Domino’s invested heavily on a series of digital multi-channel retail platforms, including the launch of SMS and a virtual store on Second Life and has no plans to slow down IT investment geared at client-facing projects.

“If we were in a different business, we would need to look at the economics, but consumer-facing projects would be the last place we would look to reduce costs,” said Jane Kimberlin, IT director at Domino’s Pizza.

“You have to be strong enough to continue investment in that area even during an economic downturn, as the good times will come back and customers will be loyal to the business that has looked after them,” said Kimberlin.