Dollar Tree is advancing its supply chain resilience and scalability through multiple initiatives, according to Chief Supply Chain Officer Roxanne Weng in a statement to Supply Chain Dive.

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The retailer recently inaugurated a 1 million-square-foot distribution center in Litchfield Park, Arizona, to accelerate delivery to its stores. Outbound deliveries from this facility are scheduled to begin next month, and it will serve approximately 700 stores across the West and Southwest. The warehouse supports large-scale distribution in Arizona, Colorado, Nevada, New Mexico, and Utah, and is designed to improve service consistency and inventory flow. Weng noted the facility is built for current volume while allowing room for future expansion.

Dollar Tree also plans to open a new distribution center in Marietta, Oklahoma, in 2027. This facility will replace a building destroyed by a tornado in 2024. The loss of that site had previously increased transportation costs and added miles to the network, as Weng mentioned at an Investor Day event last year.

The Litchfield Park and Marietta warehouses are part of a long-term strategy to increase the number of stores per distribution center, enhance facility efficiency, and reduce cost per location. Weng explained that the broader network strategy aims to position infrastructure closer to stores, cutting transit times and speeding product availability on shelves.

Improvements to the logistics network include route optimization, better alignment of inbound and outbound flows, and data-driven delivery performance. Fleet management is being upgraded with new systems and technology, including warehouse and yard management tools.

At the 2025 Investor Day event, Weng disclosed that the company had secured multi-year inbound and outbound freight contracts covering about three-quarters of its freight volumes. These agreements aim to improve cost predictability and service reliability while reducing spot market exposure. Weng also said the import strategy is being diversified by sourcing products from multiple origins and balancing volume across carriers and ports to increase flexibility in response to global changes.

Overall, Dollar Tree’s distribution footprint expansion and strategic logistics efforts are intended to strengthen its supply chain, with all investments ultimately supporting the company’s core mission of delivering value, convenience, and expanded assortment to customers.

Source: IndexBox Market Intelligence Platform