Strong in-store promotions have contributed to Domino’s Pizza’s life in strong same store sales for the first quarter of the 2011 financial year.
The pizza chain saw a 7.83 per cent growth which has been achieved with same store sales growth of 9.35 per cent in Australia and New Zealand and 4.21 per cent in Europe.
Don Mijj, Domino’s CEO, said both markets experienced solid sales as a result of the company’s reaffirming its full year 2011 guidance of NPAT growth between 10 to 15 per cent.
He also highlighted that strong promotions contributed to the positive results in all five countries – Australia, New Zealand, France, Belgium and The Netherlands – which have offset the impact of the strong Australian dollar on overseas earnings.
“In Australia, the success of our Supreme and Square Puff promotions has seen Same Store Sales and Customer Counts exceeding expectations. As of today, our Same Store Sales in our Australia and New Zealand for the first four months are up 9.35 per cent on the same period last year,” Meij said.
“While over in Europe our same store sales are up 4.21 per cent on the corresponding period in 2009.
“Our European operations continue to provide significant long term growth opportunities and as a result we are very focused on adding scale in this market through increasing our store count and growing sales.”
With already 833 stores, Mejj noted the company is track to opening 50 to 60 new stores by June 2011.
“As noted in August, Domino’s Pizza plans to open 50 to 60 new stores this year and already we have opened ten new stores to the group with eight in Europe and two in Australia/New Zealand. We are also very focused on re-imaging older stores in Australia,” he said.
Meij also highlighted that the company will focus on improving store operations and technology, including enhancing its mobile ordering systems and looking at other non-iPhone mobile devices for ordering.
“We are very committed to driving sales and efficiencies in the business through improved operations at a store level. From all areas of product, service and image we have key strategies in place which are building momentum and will deliver strong results in the second half of this year,” he said.
“In addition to improving our operations, technology is the second biggest growth area for us over the next 12 months. We recently launched a new online ordering system in Australia and New Zealand which provides fast and more reliable ordering for customers.”