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Dollar General Invests $91 Million in Nationwide Expansion

Dollar General Invests $91 Million in Nationwide Expansion

GOODLETTSVILLE, TN - Dollar General is going all in on expanding its distribution center (DC) presence as of late, making plans for one traditional DC in Walton, Kentucky, and three DG Fresh cold storage facilities in Bowling Green, Kentucky; Ardmore, Oklahoma, and West Sacramento, California, in addition to opening another DG Fresh store in Montgomery, Alabama. In total, these new facilities will amount to a $91 million investment and create roughly 665 new career opportunities.

Mike Kindy, Executive Vice President of Global Supply Chain, Dollar General (Photo Source: Tennessean)“Dollar General’s supply chain network plays a critical role in ensuring the products customers need and want are delivered to our nearly 17,000 stores in a timely and consistent manner. The addition of these facilities continues to drive efficiency and service through our exceptional supply chain network,” said Mike Kindy, Executive Vice President of Global Supply Chain. “We are grateful for the continued partnerships with state and local leaders in each of these communities.”

Dollar General takes a number of factors into consideration when choosing sites for its distribution centers and cold storage facilities, including proximities to Dollar General stores, local business environments, and local workforces, among others, according to a press release.

Dollar General has invested more than $91 million into new distribution centers and facilities

The new Kentucky-based DC is expected to serve as Dollar General’s 18th traditional distribution center, and at full capacity, the 630,000-square-foot facility is expected to employ 250 individuals and serve 800 stores. Representing an approximately $65 million investment in Boone County, Kentucky, construction is expected to begin by September 2020 with operations scheduled to begin in January 2021. The city is also expected to create an additional 50 DG Private Fleet positions. Dollar General currently operates more than 580 stores in the Bluegrass State and employs more than 5,600 Kentuckians.

As reported by AL.com, Dollar General opened its $26 million, 450,000 square-foot Alabama-based cold storage facility on August 5, and is expected to support 1,500 surrounding stores and create 65 jobs. The retailer currently has 800 stores in the state and employs approximately 8,100 Alabamians.

Rod West, Vice President of Perishables Growth and Development, Dollar General“We are excited to celebrate the grand opening of our newest DG Fresh facility as we grow career opportunities and our distribution center presence in Alabama,” Rod West, Vice President of Perishables Growth and Development, said in a statement. “We are incredibly grateful for the tremendous support from both state and local officials who helped make this project happen.”

Dollar General also announced the planned addition of three more DG Fresh facilities to support its strategic, multi-phased shift to self-distribution of frozen and refrigerated products such as dairy, deli, and frozen products. As Dollar General works to build the infrastructure to better support customers, the company is investing in communities across the country and creating new career opportunities. As of May 2020, Dollar General was self-distributing to more than 9,000 stores from six DG Fresh cold storage facilities.

At full capacity, each of the following DG Fresh facilities are also expected to create 65 new jobs and support 1,500 stores:

  • Ardmore, Oklahoma: Construction is currently scheduled to begin on a 160,000 square foot DG Fresh Ardmore facility in fall 2020, which is expected to provide dual distribution synergies with the Company’s traditional dry facility that opened in Ardmore in 1994. The facility is expected to be complete by spring 2021
  • West Sacramento, California: Dollar General is currently finalizing construction on a 200,000 square foot facility in West Sacramento, California to complement the Company’s west coast distribution operations, which includes its existing Lebec distribution center that opened in 2012. Operations are expected to begin by fall 2020
  • Bowling Green, Kentucky: Construction for a 160,000 square foot DG Fresh Bowling Green facility is expected to begin by early fall 2020 and be completed by summer 2021

The addition of distribution facilities also provides opportunities for the expansion of Dollar General’s Private Fleet network. As Dollar General continues to invest in its employees, the company continues to grow its DG Private Fleet training program, which provides fully-funded, on-the-job training to store and distribution center employees interested in earning their Class A CDL (commercial driver’s license) and joining the Fleet team.

Does this unprecedented move mean more fresh expansion is in the works at Dollar General? Stick with us to find out.

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