Dollar General debuts Aurora, Colorado, distribution center

Dollar General opened its Aurora, Colo., distribution center on Friday, the discounter’s latest move towards expanding its reach. 

The facility is about 1 million square feet and will create approximately 400 new jobs, Dollar General said.

“The Aurora facility will further support our ability to better serve our stores and customers throughout the western United States,” Dollar General CEO Todd Vasos said in a statement

Dollar General, based in Goodlettsville, Tenn., also donated $10,000 to Aurora public schools as part of the grand opening celebration.

The retailer has focused on its distribution centers over the past year to help address supply chain issues that resulted in losses exceeding $40 million in 2022.

Dollar General announced the opening of its first dual distribution center in Blair, Neb., in August 2023. The roughly 1 million-square-foot facility combines the efficiencies of traditional and DG Fresh supply chain functionalities. DG Fresh is Dollar General’s distribution network that allows fresh food to be delivered to stores. 

In September 2023, Dollar General announced automation plans for a distribution center in Jonesville, S.C., with plans to expand automation across DCs nationwide.

The new tech enables the warehouse to replenish thousands of products for more than 1,000 stores in the Southeast region.

Dollar General plans to open a 1.2 million-square-foot distribution center in North Little Rock, Ark., in 2025. The facility will help the retailer sell fresh products in more stores. More than 12 DG stores in Little Rock now offer fresh produce.

The growth and upgrades in distribution centers coincide with Dollar General's decision to slow the pace of store openings. Following a sluggish 2023 third-quarter earnings performance, Vasos said the retailer would pump the brakes onnew store openings amid rising shrink and slowing sales.

On average, Dollar General opens about 1,000 new locations per year, but the plan for 2024 is to debut 800 new stores.

Dollar General opened its 20,000th store in Alice, Texas, on Feb. 24.

Dollar General now operates more than 20,300 locations.