Dollar Tree is expanding its distribution network with the inauguration of a 1 million-square-foot distribution center in Litchfield Park, Arizona, set to begin outbound deliveries next month and serve approximately 700 stores across the West and Southwest. The company plans to open a new facility in Marietta, Oklahoma, in 2027 to replace a site destroyed by a 2024 tornado. These facilities are part of a long-term strategy to increase stores per DC, reduce cost per location, and improve service consistency. Dollar Tree also secured multi-year freight contracts covering about three-quarters of its freight volumes in 2025 to enhance cost predictability and service reliability. The company is diversifying import strategies across multiple origins, carriers, and ports to boost supply chain flexibility. Chief Supply Chain Officer Roxanne Weng emphasized that the network strategy aims to position infrastructure closer to stores, reducing transit times and accelerating product availability.
Dollar Tree Inaugurates 1M-Square-Foot DC in Arizona
According to www.indexbox.io, Dollar Tree has opened a 1 million-square-foot distribution center in Litchfield Park, Arizona, to enhance supply chain resilience and delivery speed. Outbound deliveries from this facility are scheduled to begin next month and will serve approximately 700 stores across the West and Southwest. The warehouse is designed to support large-scale distribution in Arizona, Colorado, Nevada, New Mexico, and Utah, with room for future expansion.
Strategic Expansion Includes 2027 Facility in Marietta, Oklahoma
Dollar Tree plans to open a new distribution center in Marietta, Oklahoma, in 2027. This facility will replace a warehouse destroyed by a tornado in 2024, which had previously increased transportation costs and added miles to the network, according to Chief Supply Chain Officer Roxanne Weng. The new center is part of a long-term strategy to increase the number of stores served per distribution center, improve facility efficiency, and reduce cost per location.
Multi-Year Freight Contracts Cover Three-Quarters of Volumes
At the 2025 Investor Day event, Weng disclosed that Dollar Tree has secured multi-year inbound and outbound freight contracts covering about three-quarters of its freight volumes. These agreements are intended to improve cost predictability and service reliability while reducing exposure to volatile spot market conditions. The company is also diversifying its import strategy by sourcing products from multiple origins and balancing volume across carriers and ports to increase flexibility in response to global supply disruptions.
“The broader network strategy aims to position infrastructure closer to stores, cutting transit times and speeding product availability on shelves.” — Roxanne Weng, Chief Supply Chain Officer
Logistics and Fleet Upgrades Support Long-Term Efficiency
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. These changes are designed to improve service consistency, inventory flow, and overall delivery performance across the network.
According to the report, Dollar Tree’s distribution footprint expansion and strategic logistics initiatives are intended to strengthen its supply chain, with all investments supporting the company’s core mission of delivering value, convenience, and expanded assortment to customers.
Source: www.indexbox.io
Compiled from international media by the SCI.AI editorial team.
