Domino’s and Super Retail add to the chain store boom
The booming performance of retail chain stores has continued with Domino’s recording an underlying profit of $96.2 million, an increase of 32 per cent as its global food sales passed $1.84 billion.
Domino's sales have boomed during the lockdown
Super Retail Group also reported a booming $172 million net profit, an increase of 201 per cent. It will pay a 33 cents a share dividend while Domino’s will pay a dividend of 88.4 cents a share.
Domino’s said its second half has kicked off with same-store sales up 10 per cent and network sales up 20 per cent.
Managing director Don Meij said it was still experiencing uncertainty but believed the principles that have delivered the company’s success would guide the next phase.
Franchisee profits were up 20 per cent and Meij said franchisee appetite for reinvestment and expansion was as high as ever.
Network sales growth in all countries was positive, with particularly strong growth in Japan and Germany. The Benelux region (Belgium, The Netherlands and Luxembourg) was challenged.
Japan sales were up 42 per cent and 68 new stores were opened. Europe sales were up 13.8 per cent with 50 new stores. Australia and New Zealand sales rose 5.7 per cent with 13 new stores.
Super Retail said its digital channel had increased 87 per cent in the half-year, which helped boost its record half-year profit.
Group sales were $1.77 billion and it had an additional 700,000 customers added to its loyalty program.
