According to a press release, Dollar General will erect a 1.2 million square foot distribution center to be located near Little Rock, AR. According to the Arkansas Democrat-Gazette, the facility will be in operation in April 2024 and will cost in excess of $140 million. The purpose is to increase the efficiency of operations and support the growing number of Dollar General stores in the Southeast. Eventually, similar DCs will be located in Colorado and Oregon to serve the Rocky Mountain and Northwest regions respectively.
An added motivation is the need to receive, store and distribute fresh produce as the company will increase offerings of fruit and vegetables. The company has a target of 5,000 stores in the U.S. that will stock an expanded range of foods by the first quarter of 2024.
Dollar General intends to offer fresh fruit and vegetables in half of their approximately 20,000 stores including areas regarded as “food deserts”. This move to expand offerings of ‘healthy” food items follows criticism by federal, state and local authorities concerning the impact of dollar stores on the nutrition of communities that are underserved by traditional retail grocery chains.