Dollar General expands supply chain with new facilities

The discount retailer is expanding its supply chain network with new facilities in Nebraska, Georgia, Texas, South Carolina and New York.
A Dollar General truck on the highway.
  • Dollar General is investing in its supply chain. 
  • The retailer opened a new facility in Nebraska that supports traditional fulfillment and DG Fresh fulfillment. 
  • Other recently opened facilities include an expanded South Carolina facility and new regional facilities in Georgia and Texas.

Dollar General is expanding its supply chain in the U.S., adding new facilities in Nebraska, Georgia, Texas, South Carolina, New York, Arkansas, Colorado and Oregon.

The discount retailer detailed the new facilities in a May 9 release. It opened a new distribution center in Blair, Nebraska, with plans for a grand opening in the summer. The retailer said the new Nebraska distribution center represented its first ground-up, dual distribution center, combining its traditional and DG Fresh supply chain networks, the latter focused on frozen and refrigerated products. 

According to the release, DG Fresh, launched in 2019, now delivers to more than 19,000 stores from a dozen facilities. The Nebraska facility will create approximately 400 jobs, according to Dollar General. 

The retailer also in the release said it opened new permanent regional facilities in Newnan, Georgia, and Fort Worth, Texas. Dollar General said the facilities would each employ 200 people and would expand its distribution center storage capacity by approximately 2 million square feet, serving as an intermediary point between import locations and its distribution network.

Dollar General also expanded its Jonesville, South Carolina, distribution center with a $45 million 250,000-square-foot addition that was recently completed. The retailer also said it was planning to build a 170,000-square-foot new DG Fresh distribution facility in Amsterdam, New York, near its existing traditional distribution center that opened there in 2019. Dollar General expected it would begin construction on the facility next year.  Also in the pipeline: three new distribution centers in North Little Rock, Arkansas; Aurora, Colorado; and Salem, Oregon.

Dollar General operates more than 19,000 stores across 47 states and has more than 30 distribution centers. The discount retailer earlier this year said it planned to invest about $100 million in its business in 2023, primarily with expenditures in incremental labor hours to help it build sales momentum and capture additional market share, Retail Leader reported.

The dollar- and discount-store channels have seen growth as consumers search for value in the face of continued inflation across retail. These channels become increasingly popular with consumers for grocery items, especially as the dollar channel offers value and often has stores in communities with limited access to supermarkets or other retail channels, Retail Leader Pro previously reported.