Dollar Tree Expands Distribution Network

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Dollar Tree Expands Distribution Network

By Thad Rueter - 09/03/2020
Dollar Tree Expands Distribution Network
Last year, Dollar Tree’s distribution network shipped and received more than 1.8 billion cases of merchandise.

Dollar Tree has reached a distribution milestone.

The retailer this week held a grand-opening ceremony for its 25th U.S. distribution center, this one in Rosenberg, Texas. The retailer also recently started shipping product from its 26th U.S. facility, in Ocala, Florida.

“Our two newest state-of-the-art distribution centers will enhance our supply-chain efficiencies by providing stores in the southeastern and southwestern states with essential products, at great values, for our customers,” said Michael Lech, Dollar Tree’s chief logistics officer. “Yesterday, we celebrated the creation of more than 400 jobs in the Rosenberg region, and our team is appreciative of the partnerships and support provided by the city of Rosenberg, Rosenberg Development Corp., Fort Bend Economic Development Council and Texas Workforce Solutions.”

The plans for the approximately $130 million investment in the Texas distribution center were disclosed in February 2019. The 1.2 million-square-foot facility will initially service Dollar Tree stores across a three-state region.

To continue supporting its stores, the Chesapeake, Virginia-based retailer recently began shipping product from its Ocala distribution center. The first phase of the 1.2 million-square-foot facility opened last month, with the second phase expected to be completed in 2022.

“Dollar Tree continues to grow, and our Ocala facility will play an integral role in servicing the needs of stores in Florida and the surrounding states,” Lech said.

Last year, Dollar Tree’s distribution network shipped and received more than 1.8 billion cases of merchandise through its facilities.

In late August, Dollar Tree reported that its revenue increased 9.4% in the second quarter ended Aug. 1, reaching $6.28 billion. The chain’s enterprise same-store sales increased 7.2%. Same-store sales for Family Dollar increased 11.6%, while Dollar Tree same-store sales increased 3.1%.

Dollar Tree operates 15,370 stores across 48 states and five Canadian provinces. The company's stores operate under the Dollar Tree, Family Dollar and Dollar Tree Canada banners. Dollar Tree is No. 30 on Progressive Grocer’s 2020 PG 100 list of the top food and consumables retailers in North America, while Family Dollar is No. 32.