‘Decisive action’: Dominos to close 200 stores to reshape the business
Domino’s Pizza said the closures would save the company approximately $15.5 million.
Retail
Don't miss out on the headlines from Retail. Followed categories will be added to My News.
Dominos Pizza will close more than 200 unprofitable stores globally in a bid to improve the company’s long-term profitability.
The bold move was announced by the company’s new CEO Mark van Dyck, who started in the role just three months ago following the retirement of long-time boss Don Meij.
Mr van Dyck said the 205 closures would help “reshape” the business, including 172 in Japan. The rest will be in Europe and Australia.
“To reach our potential, we are taking decisive action,” he said in an ASX statement on Friday morning.
“Some of our Covid-period expansion resulted in stores that simply weren’t optimal based on our current customer proposition, and removing them will strengthen our network.”
He said the business was now focused on long-term success, with the closures set to save the company approximately $15.5 million.
“Where change is required, we are acting quickly and transparently,” he said.
“Our priority remains clear, creating value for customers, franchise partners, and shareholders.”
Dominos has already suffered a wave of closures in recent years following COVID-19, with the business closing 10 per cent of stores in Japan and France last year.
Prior to taking on the role as Dominos CEO, Mr van Dyck served on the executive board of Compass Group, a London-listed food service company with a market capitalisation of $79bn.
In November, Domino’s chairman Jack Cowin said he was chosen for the head role at Dominos due to his “track record of successful transformations”.
“Under his leadership Domino’s Pizza grew from a Brisbane-based company to a truly global business, the market leader in each of the markets the company has operated for more than three years in Europe and the Asia-Pacific,” he said.
“Don has done an exceptional job of delivering positive outcome for all our stakeholders, including franchise partners, shareholders and employees. He leaves an impressive legacy.”
Originally published as ‘Decisive action’: Dominos to close 200 stores to reshape the business
Coles slammed over mass product cull
Nationals leader David Littleproud has hit out at Coles after the supermarket giant flagged a cull in its product range, claiming prices at the checkout would rise.
Read more
Huge blow for iconic Aussie surf brand
The business behind legendary Australian surfwear brands Billabong and Quiksilver has applied for bankruptcy in the US, with more than 100 stores to close.
Read more