Dive Brief:
- Dollar General opened a new distribution center in North Little Rock, Arkansas, the discount retailer announced Saturday.
- The 1-million-square-foot facility will support the company’s traditional supply chain, its DG Fresh network and the DG Private Fleet, per the press release.
- Dollar General opened its first store in Arkansas in 1975 and this is its first distribution center in the state.
Dive Insight:
Dollar General’s recent distribution center opening is part of the retailer’s efforts to reshape its supply chain operations. In 2023, the company opened new distribution centers in Blair, Nebraska; Newnan, Georgia; and Fort Worth, Texas. Last year, the retailer unveiled another facility in Aurora, Colorado, to serve stores throughout the Western part of the United States.
As Dollar General continues to open its own distribution centers, the retailer has transitioned away from rented facilities. During a December earnings call, CEO Todd Vasos said the company withdrew from four temporary warehouse facilities during its third quarter to “improve overall efficiency in our supply chain while also reducing costs.”
The North Little Rock facility “looks to better support our store teams and customers by combining the functionalities of our traditional, DG Fresh and Private Fleet distribution channels,” Rod West, Dollar General’s executive vice president of global supply chain, said in a statement.
Dollar General has also been rethinking its approach to fresh produce and private-label products. Vasos said that the retailer plans to introduce fresh produce to about 300 locations this year, a slower pace than previous years, making those products available at approximately 7,000 stores. At the same time, the company is expanding its private labels. Last month, the company said it plans to roll out about 100 new private brand products in Q1, more than half of which will be under the Clover Valley grocery brand.
Last year, the company named Kevin Pinchon as its senior vice president of distribution. Pinchon previously worked with retailers like HD Supply, Grainger and Target.
