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Dollar General eyes Northeast Expansion

Plans for a new distribution center near Philadelphia will allow Dollar General to more effectively replenish its rapidly expanding store base.

dollar-general-lobby-retail-localization

Dollar General said it planned to build a new 900,000-sq.-ft. distribution center on 109 acres in Bethel Township located near the intersection of I-78 and State Route 501 just west of Philadelphia. The company said it still needs to purchase the land and receive the necessary governmental permits and development approvals, but those requirements appear to be mere technicalities as construction is expected to begin this fall. Hiring would begin in the fall of 2013, according to the company.

The total cost for the facility, including equipment and fixtures, is expected to reach approximately $100 million. At full capacity, the facility will likely employ more than 500 people to serve more than 1,000 stores in the northeast. Additionally, Dollar General’s third-party transportation provider expects to employ 75 drivers.

Once open, the new facility will bring much needed distribution capacity to a company intent on growing its store base in the Northeast. Dollar General already operates 440 stores in Pennsylvania, but its closest DCs are located in Virginia, Ohio and Kentucky.

Announcement of the new DC, the company’s 12th such facility, follows the first quarter opening of new distribution centers in Alabama and a California. The increase in distribution capacity comes as Dollar General earlier this year opened its 10,000 store and has confirmed its view that the U.S. can support as many as 20,000 of its small format general stores that offer low prices on a broad assortment of food, consumables and general merchandise.

[via Retailing Today]

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