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Dollar Tree shifting supply chain after tornado damages Oklahoma warehouse

The distribution center which is located on Interstate 35 just 16 miles north of the Texas border may take quite a while to rebuild.

Dollar Tree says its stores will continue to receive goods after its distribution center in Marietta, Okla., sustained significant tornado damage Saturday night.

The 1 million-square-foot distribution center is one of 15 that supply about 600 of the more than 8,400 Dollar Tree stores in the U.S. including hundreds in Texas.

“We are grateful to report that no one was injured,” said Kate Kirkpatrick, a spokeswoman for Dollar Tree. “Our immediate focus is on the needs of our associates and the communities this distribution center serves.”

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The facility has 456 employees.

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Tornadoes swept through Oklahoma over the weekend, killing at least four people and causing widespread structural damage and power outages.

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Dollar Tree is “working as swiftly as possible to assess the facility’s damage and pivot our operations to ensure our nearby stores receive the supplies they need to serve our customers,” Kirkpatrick said in an emailed response.

The distribution center which is located on Interstate 35 just 16 miles north of Oklahoma’s border with Texas may take quite a while to rebuild.

These facilities operate with advanced materials handling technologies, including radio-frequency inventory tracking equipment and specialized information systems. Many also have automated conveyor and sorting systems, according to Dollar Tree’s annual report.

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About 90% of Dollar Tree stores’ shipments come from its 15 U.S. distribution centers. The rest, mostly perishable foods, come directly to stores from vendors or third-party distributors, according to the retailer’s annual report.

“We run a high-performing distribution network and have activated our other distribution centers to support our stores in the region,” said Mike Kindy, chief supply chain officer for Dollar Tree. “We will continue to manage through the near-term challenges associated with this event and are confident in our ability to continue to meet our customers’ expectations and operate our business.”

Dollar Tree also owns the Family Dollar chain. That chain has its own network of 10 distribution centers that supply the 8,300 Family Dollar stores in the U.S.

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Updated April 30, 2024 at 8:30 a.m. with new information from Dollar Tree.

X: @MariaHalkias

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