Dollar General on Wednesday said it planned to build three new distribution centers, spread around the country, to expand its supply chain of fresh and frozen foods.
The new distribution centers in Little Rock, Ark.; Aurora, Colo.; and Salem, Ore., a $480 million project, will “combine efficiencies of our DG Fresh and traditional supply chains,” said Tony Zuazo, the company’s executive vice president of global supply chain, in a statement.
Dollar General launched its DG Fresh program in 2019, an initiative that was spearheaded by CEO Todd Vasos, who announced his retirement earlier this month, effective Nov. 1. The expanded availability of fresh produce and frozen and refrigerated items, distributed by Dollar General itself, has generated strong sales for the discounter, outperforming other product categories.
The newly announced distribution centers in Arkansas and Salem will add to Dollar General’s network of “dual facilities,” those that handle general merchandise as well as DG Fresh products, the company said. Dollar General’s first new construction dual distribution facility is currently being built in Blair, Neb., and facilities in Armore, Okla.; and Zanesville, Ohio; have recently added DG Fresh capabilities, the company said.
Construction on the Little Rock center is slated to begin this fall, with a planned completion date late next year. Construction in Colorado is scheduled to start later this summer, with a late 2023 completion date. Dollar General said it plans to close on the property for the Oregon distribution center next month, with construction starting this fall.
The new facilities will also allow Dollar General to expand its private delivery fleet, which the company said will account for 40% of its delivery drivers by the end of the year. Since its launch in 2016, DG Private Fleet has grown to about 950 tractors and drivers and 25 fleet sites, the company said.
The three new distribution facilities will require about 1,100 workers, Goodlettsville, Tenn.-based Dollar General said.
Dollar General, with more than 18,000 stores and 28 distribution centers in 47 states, is the largest retailer by store count in the United States.