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USA: Dollar Tree readies new distribution centers

Discount Non-food Retail Chain 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 US$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 US$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%.

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