Dollar Tree is ramping up investment in its distribution network and technology stack as part of a broader effort to modernise its supply chain and improve inventory management across its expanding store base.
The discount retailer reported inventory levels fell 7% year over year in the latest quarter, even as sales rose 9%, signalling tighter control and improved efficiency.
CEO Michael Creedon said the company is “raising the bar” operationally, with gains in service levels, in-stock performance and inventory discipline.
Dollar Tree is upgrading its logistics infrastructure to increase speed and flexibility, with early results showing higher throughput per distribution centre and improved shipping productivity.
The retailer is rebuilding its distribution centre in Marietta, which was destroyed by a tornado in 2024. The facility is expected to reopen by spring 2027 and serve around 700 stores.
In parallel, the company has acquired a 1.25 million-square-foot distribution centre near Phoenix, set to open this spring and support stores across the Southwest, including Colorado, Nevada, New Mexico and Utah.
On the technology side, Dollar Tree is replacing decades-old legacy systems with cloud-based platforms, predictive analytics and mobile-enabled tools.
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These upgrades are designed to deliver more accurate assortment planning, better inventory visibility and improved workforce management, while reducing stockouts.
Chief supply chain officer Roxanne Weng said the new systems also allow the company to increase throughput without significantly expanding warehouse space.
The supply chain overhaul comes as Dollar Tree rapidly expands its footprint, having opened more than 1,000 stores in recent years.
The retailer currently operates 16 U.S. distribution centres, which supply roughly 90% of store inventory.
Chief financial officer Stewart Glendinning said the company is focused on aligning distribution capacity with store growth, ensuring products are routed more efficiently while reducing handling and transport distances.
The investments highlight a broader push to build a more agile, data-driven supply chain capable of supporting continued expansion while improving margins and in-store availability.
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