Facing higher logistics expenses from distribution operations roiled by the Covid-19 pandemic and severe winter weather, Dollar General Corp. plans to expand its private trucking fleet to bring more of its transportation in-house, the company’s chief operating officer said.
Jeff Owen, COO at the discount retail chain, says the move will help reduce shipping costs at a time when tight capacity in U.S. domestic supply chains is sending prices for trucking services soaring. Dollar General’s profit and gross margin expanded year over year in the latest quarter but higher shipping rates weighed on the bottom line, the company said.
The expansion comes as Dollar General is increasing its store network in the U.S. and building up its DG Fresh program, which aims to shift distribution of refrigerated goods to the company’s own trucks, Mr. Owen said in a March 18 earnings conference call.
Source: WSJ
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