Dollar Tree has opened a one million-square foot distribution in Litchfield Park, Arizona, outside of Phoenix and plans to begin outbound deliveries next month, the value retailer announced on Thursday.
As one of Dollar Tree’s (NASDAQ: DLTR) largest distribution centers, the climate-controlled facility will service about 700 stores in Arizona, Colorado, Nevada, New Mexico, and Utah. The company now has 19 distribution centers that support more than 9,240 stores across North America.
“This facility will help us move product closer to our stores and serve customers more quickly,” said Roxanne Weng, chief supply chain officer, in a news release.
The new facility is part of a broad investment strategy to optimize Dollar Tree’s distribution network. The company is expanding and modernizing DCs and replacing legacy warehouse and yard management systems with cloud-based platforms that will enable better inventory planning, visibility and execution, Weng said at an Investor Day presentation last October. The addition of temperature-controlled storage in all DCs was completed last year. The upgrades are helping to even out product flow to stores so back rooms aren’t overcrowded, improve throughput per facility, reduce out-of-stock items, and strengthen the company’s cost structure, she added.
Dollar Tree plans to open its next distribution center in Marietta, Oklahoma, in spring 2027, after it finishes rebuilding a facility that was destroyed by a tornado in April 2024. The enhanced Marietta facility will also have one million-square feet of capacity and serve about 700 Dollar Tree stories in the Southwest and West.
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