Dollar Tree has opened a 1 million-square-foot distribution center in Litchfield Park, Arizona, as part of its strategy to build a more resilient and scalable supply chain. Chief Supply Chain Officer Roxanne Weng told Supply Chain Dive the facility will begin outbound deliveries next month and serve approximately 700 stores across the West and Southwest. Weng emphasized the investment is part of a broader strategy to reduce transit times and get products on shelves more quickly.
The new warehouse enables Dollar Tree to support large-scale distribution across multiple states, including Arizona, Colorado, Nevada, New Mexico, and Utah. Weng said the facility is built to handle current volume while providing room for future growth. The company is also set to open a new distribution center in Marietta, Oklahoma, in 2027 to replace a building destroyed by a tornado in 2024. The site's destruction led to higher transportation costs due to reduced distribution capacity and added transport miles.
Dollar Tree is focusing long-term on increasing the number of stores each distribution center supports, improving efficiency within facilities, and lowering overall cost per location. Weng said the company is enhancing its logistics network through route optimization, better alignment of inbound and outbound flows, and data-driven delivery performance. The retailer is investing in upgraded systems and technology, including warehouse and yard management tools, to improve fleet management.
At the 2025 Investor Day event, Weng mentioned Dollar Tree had secured multi-year freight contracts to improve cost predictability and service reliability. The agreements cover about three-quarters of the retailer's freight volumes and help reduce exposure to the spot market. Weng told Supply Chain Dive the company is also strengthening its import strategy by diversifying sourcing origins and balancing volume across carriers and ports, providing more flexibility to respond to global changes.
Weng stressed that all these investments support the company's core mission: "Delivering value, convenience, and expanded assortment to millions of customers." Dollar Tree's distribution footprint expansion and strategic logistics initiatives are designed to further fortify its overall supply chain resilience.
Key Takeaways:
1. Dollar Tree opened a 1 million-square-foot distribution center in Litchfield Park, Arizona, to serve 700 stores across the West and Southwest.
2. The company will open a new distribution center in Marietta, Oklahoma, in 2027 to replace a facility destroyed by a tornado in 2024.
3. Multi-year freight contracts cover three-quarters of total freight volumes, improving cost predictability and service reliability.
4. Route optimization, warehouse management technology, and data-driven delivery performance are enhancing the logistics network.
5. Import strategy diversification and carrier-port balancing provide flexibility to respond to global changes.
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