Domino’s Pizza Enterprises will close up to 80 low volume stores (including some franchises) in Japan and up to 30 stores in France this financial year.
In both countries these closures will be partially offset by store openings. In Japan at least 20 new stores in locations with better potential; in France another 10 stores.
News of the proposed closures follows a review of store locations in Japan and in France a focus on aligning stores on best practice systems.
Neighbouring stores will service most delivery customers from the shuttered outlets. This will improve their unit economics, and minimise the total sales impact for the market.
Domino’s intends to reinvest funds to boost marketing and advertising to increase customer purchases.
In its business update and FY25 outlook, Domino’s forecast a return to positive same store sales in Japan in FY25.
Growth trajectory
There is ongoing positive performance from the markets in Australia and New Zealand, Germany and Singapore. The Benelux market has recently improved.
Domino’s expects a flat to slightly positive store growth in FY25, after store closures. This will increase to 3-4 per cent (net growth) in FY26.
However Domino’s predicts it will take longer than 2033 to achieve its goal of 7100 stores. Management’s focus on building franchise partner profitability and reducing average store payback it expects to lead to higher, sustainable organic store growth which will help reach the longterm outlook.
The company will release full year results on 21 August.
