X Factor helps Domino’s slow declining sales

Advertising campaigns linked to television shows such as The X Factor, I’m A Celebrity, Get Me Out of Here and Dancing on Ice have helped Domino’s Pizza slow the decline in Irish sales last year.

Despite the tough economic conditions in Ireland, the pizza chain opened one new store here. Driven by product innovation and TV advertising, Domino’s reduced the decline in sales from -8.6% in 2010 to a decline in like-for-like sales of -4.1% in 2011.

An increase in sales of pizzas through internet and mobile phone apps contributed. Online business now accounts for 25% of orders. Mobile phone sales through apps have also risen, with 12% of online sales from an app being made in the fourth quarter.

Domino’s recorded over €1m in sales on the internet in one day for the first time ever last year.

Domino’s still anticipate growth in the Irish market as the economic climate improves. So far this year they have seen growth in Ireland, according to chief executive Lance Batchelor.

“Trading has continued to be robust during the first seven weeks of 2012 with like-for-like sales for the group increasing by 3.7%. sales at British stores are up 3.8% and, encouragingly, the stores in tIreland are in positive territory, up 2.3% for the first time in three years. The consumer backdrop remains a tough one, but, with record store openings and continuing appetite from our franchisees, we remain confident of the group’s ability to drive both sales and profits,” he said.

Across its 726 outlets in Britain, Ireland and Germany, Domino’s recorded sales of €250.68, in the year ending Dec 25 2011, up 12% on a year earlier.

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