Dollar General Expands DG Fresh Footprint as it Bolsters Supply Chain
Dollar General is beefing up its supply chain with of its first ground-up, dual facility in Blair, Neb. and two permanent regional distribution hubs in Newnan, Ga. and Fort Worth, Texas. The off-price retailer also is planning to expand its existing Jonesville, S.C. and Amsterdam, N.Y. facilities.
The recently opened Blair facility combines the efficiencies of both traditional and DG Fresh supply chain networks as part of the retailer’s strategic, multi-phased shift to self-distribution of frozen and refrigerated products. The facility is expected to create 400 jobs as part of a $140 million investment in the area.
The DG Fresh network was introduced in 2019 as a way to enable self-distribution of fresh and frozen items. Dollar General’s ultimate goals are to reduce the long-term costs associated with working with other distributors, improve in-stock levels of perishable foods, tailor product selections to specific markets and increase its private label selection. The network currently delivers to more than 19,000 stores from 12 facilities.
The regional distribution hubs in Newnan and Fort Worth will expand storage capacity by more than 2 million square feet and serve as intermediary points between import locations and Dollar General’s distribution center network. Each facility will employee about 200 people.
The Jonesville expansion represents a $45 million investment in the existing distribution center to add an additional 250,000 square feet of space. It was completed earlier in 2023. The Amsterdam expansion will add a 170,000-square-foot DG Fresh facility to complement the traditional distribution center already present, with construction slated to begin in 2024.
“The recent additions to our supply chain network aim to provide greater efficiencies, create additional jobs and drive positive economic impact,” said Tony Zuazo, EVP of Global Supply Chain at Dollar General in a statement. “We’re excited to continue growing our distribution center network to further support store growth and to better serve our customers and local communities.”
The new facilities will support Dollar General’s current growth plans, which include opening 1,050 stores in 2023 and investing nearly $100 million to increase labor hours for its more than 170,000 store employees to enable “consistent store standards while further enhancing the associate and customer experience,” according to CEO Jeffrey Owen.
Dollar General also is exploring alternative revenue streams by expanding its DG Media Network (DGMN) through partnerships with Meta and LiveRamp. The Meta partnership will enable DGMN’s brand partners to reach more than 90 million unique customer profiles across the Meta ecosystem, while LiveRamp helped Dollar General run a campaign aimed at giving brands the insight needed to better collaborate with DGMN to reach rural customers.