Military Market Facts June 2016
Military Market Facts June 2016
A Brief Overview
Our History • 1920 Incorporated as the Quartermaster’s Associa7on (QMA)
QMA was composed of officers of the Regular Army, the Na:onal Guard, the Organized Reserves, key civilians in the federal government and leaders of industry. QMA disseminated professional informa:on concerning all Quartermaster and related ac:vi:es, and fostered and promoted a spirit of coopera:on and friendly exchange of ideas among the members.
• 1961 QMA becomes the Defense Supply Associa7on (DSA) The name was changed in response to the establishment of the Defense Supply Agency, as well as the increasing responsibili:es being placed upon the U.S. Army Quartermaster Corps to provide food, clothing and general supplies to all the Armed Forces under DoD’s single manager concept. The Associa:on was composed of officers of the Armed Forces, key civilians in the federal government and leaders of industry.
• 1972 DSA becomes the American Logis7cs Associa7on (ALA) To eliminate confusion with the Defense Supply Agency, the Associa:on changed its name to the American Logis:cs Associa:on and adopted the “eagle in the oval” logo. The new ALA carried forward the same objec:ves of the Quartermaster and Defense Supply Associa:ons. According to an editorial in the July/August 1972 issue of ALA’s Review Magazine, the new name “was chosen to “show clearly who we are, what we do and how we intend to func:on. ‘American’ must always exalt the pride of patrio:sm…we believe in our country, in its customs, in its ideas and in its business efforts. ‘Logis:cs’ is defined as that branch of the military art which embraces the details of transport and supply. ‘Associa:on’ is a union; a connec:on of persons or things, or a union of persons in a company or society for some par:cular purpose.”
• 1974 ALA reorganizes into a na7onal trade associa7on Led by a Board of Directors comprised of representa:ves from industry, the newly organized associa:on was designed to serve
industry and its related interests in military and other government ac:vi:es.
• 2005 ALA Board of Directors revised the mission of ALA To include a focus on Total Quality of Life and MWR/Services. The American Logis:cs Associa:on promotes, protects, and enhances the military resale and quality of life benefits on behalf of our members and the military community.
Programs and Services
• It is our goal to provide valuable programs and services that enable all members to operate effec:vely and efficiently with the military resale system and services.
• ALA is the only organiza:on that can give you the resources and the
informa:on you need to succeed. We strive to increase the visibility of the Associa:on and enhance the services that ALA provides its members.
Contact InformaAon
American Logis:cs Associa:on 1101 Vermont Ave, N.W.
Suite 1002 Washington, DC 20005 Phone (202) 466-‐2520
Email: membership@ala-‐na:onal.org www.ala-‐na:onal.org
Military Resale Market FY 2015 Total Sales: $ Billion
Exchanges $ 13.502 B Thru 2014
Commissaries $ 5.51 B
Ships Afloat $63.8 M Thru 2014
Exchange Data will be updated with Audited 2015 sales Sept 2016
Military Patrons AcAve Duty Demographics
Authorized Shoppers Total Shoppers Authorized 2014: 12.6 Million
Source: AAFES Con9ngency Planning Office-‐Ac9ve Duty declining 2012-‐2016
Guard & Reserve 1.190 Million
DoD Civilian Employees 776,198 Million
Ac7ve Duty 1,514.3 Million
Re7rees 2.436 Million
Family Members 6.93 Million
1.37 1.37
1.44
1.39
1.43 1.43
1.4 1.39
1.38
1.41
1.38
1.4
1.47
1.35 1.34
1.32
1.20
1.25
1.30
1.35
1.40
1.45
1.50
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Ac7ve Duty Military Personnel Trend Million $
Calendar Year
Active Duty Demographics
Age
<25 43%
26-‐30 22%
31-‐35 15%
36-‐40 11%
41+ 22
50+ .01%
Officers Enlisted
16.4% 83.5%
Male Female
1,170,702
85.3% 200,945 14.2%
Source: DMDC Updated –Declining -‐2016
Military Resale Agencies
• Defense Commissary Agency (DeCA) • Army and Air Force Exchange Service (AAFES) • Navy Exchange Service Command (NEXCOM) • Marine Corps Exchange (MCX) • Coast Guard Exchange Systems (CGX) • Veterans Canteen Service (VCS)
Defense Commissary Agency
Director/CEO: Joseph Jeu, SES
Deputy Director/COO:
Michael Dowling
Selected Opera7ons and Services: Grocery; Freeze; Chill; Produce Meat; Dairy; Deli/Bakery/Sushi
FY 2015 Sales: $5.51 Billion
Established: 1991 Employees: Approximately 17,000 Headquarters: 1300 E Avenue Fort Lee, VA 23801-‐1800 Phone: (804) 734-‐8253 Web site: www.commissaries.com Major Distribu7on Facili7es: CONUS Civilian Distributor Network Overseas DeCA Central Distribu:on Centers
DeCA Profile
Director / Chief Execu:ve Officer
Deputy / Chief Opera:ng Officer
Execu:ve Director Store Opera:ons
Execu:ve Director Sales, Marke:ng & Policy
Program Management
Resource Management
Human Resources
Informa:on Technology
Engineering
Logis:cs
Sales
Health & Safety
General Counsel
Washington Office
Store Support
CONUS and OCONUS Stores
Senior Enlisted Advisor
Inspector General
Acquisi:on Management
Opera:ons & Policy
Resale Contrac:ng
EEO
Blue blocks -‐ ALL assets at Fort Lee
Yellow blocks -‐ ALL assets geographically dispersed
Green blocks -‐ assets located at Ft Lee & geographically dispersed
Strategic Planning
CDC and CMPP
Chief Performance Officer (PAO, CPI and ESD)
Business Development
Execu:ve Director Infrastructure Support
E-‐Commerce
Shopper Insights
Equip/Property Acct & Environmental
Business Requirements Cell
DeCA Organiza7on
14
Mission Statement
Deliver the Premier Quality of Life
Benefit to the Armed Services
Community -‐ To enhance recrui7ng,
reten7on and readiness by efficiently
and effec7vely providing excep7onal
savings and excellent products and
superior services -‐ EVERYTIME,
EVERYPLACE.
DeCA Facts
• Annual opera:ng Budget-‐ Congressionally Funded • Headquarters-‐ Fort Lee, Virginia • FY 2015 Sales-‐ $5.51 Billion • FY15 240 stores (168 CONUS and 72 OCONUS) • Merchandise sold at cost plus 1% to cover shrinkage plus 5% surcharge applied at register • Vendor stocking required for some categories • Es:mated that 45% of DeCA shoppers are re:rees • Commissaries recognized as the Premier Quality of
Life non-‐pay benefit
4.9 5 5 4.97 5.04 5.24 5.37 5.42 5.56
5.8 5.98 5.84 5.96 6.09
5.87 5.63 5.51
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
DeCA Fiscal Year Sales Billion
$
Fiscal Year
America’s Top Food Retailers Company Name Sales (000) No. Stores
1. Wal-Mart $298,378,000 4,132
2. Kroger $109,800,000 2,623
3. AB Acquisition $58,322,940 2,290
4. Publix $32,400,000 1,114
5. Ahold USA $26,400,000 788
6. HEB $23,000,000 315
7. Delhaize America $18,058,000 1283
8. Meijer $16,700,000 223
9. Wakefern Food Group $15,700,000 187
10. Whole Foods Market $15,389,000 419
11. Trader Joe’s $12,800,000 448
12. Southeastern Grocers $11,898,000 750
13. Aldi $10,900,000 1,451
14. Target $10,400,000 249
20. Defense Commissary Agency $4,646,389 177
Source: Progressive Grocer Magazine, Nielsen March 2016
19 19
* DeCA sales data based on CY 2012 data for U.S. stores (including Puerto Rico) over $2 million in CY 2012 (171 Commissaries) to compare with industry ** Savings % used was the 2012 DeCA U.S. (50 State) savings of 29.4% aVer tax and surcharge. This % is applicable to U.S. data as used in these computaAons. Overall 2012 DeCA Worldwide savings aVer tax and surcharge was 31.2% ***Supermarket data from Food MarkeAng InsAtute (FMI) Web site www.fmi.org (Supermarket Facts -‐ Figures -‐ Industry Overview)
Measure DeCA Actual* DeCA**
Adjusted for DeCA Savings
Supermarket***
Weekly Sales/Square Foot $17.36 $24.59 $10.22
Weekly Sales $577,421 $817,784 $318,170
Customer Purchase $65.79 $93.17 $35.01
Square Feet/Store 33,261 33,261 46,000
Sales $5.134B $7.272B $602.609B
Average Days Open Per Week 6.23 6.23 7
Average Hours Open Per Day 9.74 9.74 12 - 24
DeCA Sales Informa7on
Store Rank Sales FY2015 Sales FY2015 Transac7ons
#1 Fort Belvoir, VA $93,282,316 1,031,773
#5 Fort Campbell, KY $71,074,292 1,011,491
#10 Ramstein AB, GE $63,107,698 1,314,432
#25 Eglin AFB, FL $51,005,294 659,239
#50 Fort Riley, KS $37,831,551 671,589
#100 Naples NAS, Italy $21,304,947 414,556
Source: DeCA EOY FY15 Sales Report
DeCA Prices All Merchandise at Cost +1% (shrinkage) + 5% (surcharge)
• No Slotng fees or co-‐op adver:sing • 100% of all deal money is passed to the patron • 1% added at shelf & 5% is added at the register
An ideal test market scenario since the effect of trade funds can be accurately
assessed
Distance Deters Commissary Store Visits • The average Commissary is 2.5 7mes as far from home as the local grocery store • However, by a 2 to 1 margin, patrons are willing to put up with inconveniences to save
30% on their grocery bill
Coupons, SNAP and WIC Historical Comparisons
COUPONS FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 – thru Oct 15
Coupon Dollars $93,744,094 $98,835,469 $94,160,582 $105,198,170 $114,122,168 $112,703,419 $104,188,496 $91,005,779 $83,742,771 $71,843,845 $5,741,213
Coupon Quantity 127,630,435 126,484,119 116,944,671 123,931,649 129,353,453 123,027,684 113,297,927 99,600,279 89,160,971 73,998,178 5,935,194
$ per Coupon $0.73 $0.78 $0.81 $0.85 $0.88 $0.92 $0.92 $0.91 $0.94 $0.97 $0.97
% Change in Coupon $ vs. Prior FY 5% -5% 12% 8% -1% -8% -13% -8% -14% -14%
% Change in Coupon # vs. Prior FY -1% -8% 6% 4% -5% -8% -12% -10% -17% -16%
% Change in $ per Coupon vs. Prior FY 6% 3% 5% 4% 4% 0.40% -1% 3% 3% 2%
SNAP FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 – thru Oct 15
SNAP Dollars $26,225,702 $24,851,516 $31,146,015 $52,954,938 $72,831,952 $87,837,643 $98,842,699 $103,670,751 $84,575,783 $79,550,563 $6,247,837
SNAP Transactions 272,899 233,876 282,879 501,477 717,006 856,330 947,930 968,358 805,325 750,853 59,551
SNAP $ per Transaction $96.10 $106.26 $110.10 $105.60 $101.58 $102.57 $104.27 $107.06 $105.02 $105.95 $104.92
% Change in SNAP Dollars vs. Prior FY -5% 25% 70% 38% 21% 13% 5% -18% -6% -17%
% Change in SNAP Trans vs. Prior FY -14% 21% 77% 43% 19% 11% 2% -17% -7% -15%
% Change in SNAP $/Trans vs. Pr FY 11% 4% -4% -4% 1% 2% 3% -2% 1% -3%
WIC FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 – thru Oct 15
WIC Dollars $28,757,876 $29,266,430 $31,574,375 $30,209,689 $29,585,040 $29,878,377 $31,238,896 $29,223,857 $25,547,180 $23,975,653 $1,954,586
WIC Transactions 1,818,343 1,719,078 1,653,307 1,651,080 1,779,760 1,754,843 1,793,576 1,655,182 1,397,949 1,279,919 106,257
WIC $ per Transaction $15.82 $17.02 $19.10 $18.30 $16.62 $17.03 $17.42 $17.66 $18.27 $18.73 $18.39
% Change in WIC Dollars vs. Prior FY 2% 8% -4% -2% 1% 5% -6% -13% -6% -9%
% Change in WIC Trans vs. Prior FY -5% -4% 0% 8% -1% 2% -8% -16% -8% -8%
% Change in WIC $/Trans vs. Prior FY 8% 12% -4% -9% 2% 2% 1% 4% 3% -2%
DeCA Business Drivers
• Promo7ons via Display (Presented to DeCA Headquarters)
• Manager Specials: Category leaders, high volume items, deep discounts, mandated display, administered via automated VCM at Headquarters
• Power Buy Display: High volume items, excellent prices, mandated quan::es and display
• One Time Buys/Shippers: Highly consumable, impulse items
• Sidewalk/Case Lot Sales: Special events selling to patrons in case increments
• Dollar Days: Dollar price points and dollar mul:ples on brand name food items
• Coupons: On-‐shelf manufacturer coupons, FSI coupons & Internet coupons all accepted
• In-‐store Demos: Very effec:ve and cost efficient • Adver7sing: Several effec:ve Military specific vehicles
available
6/1/16
Mountain Home AFB
Malmstrom AFB MT
WA
OR ID
Whidbey Island NAS Smokey Point McChord AFB
Fairchild AFB Ft Lewis Bangor ANSB Bremerton NS Coastal Pacific Fife
SuperValu Tacoma
Travis AFB Moffett Field McClellan AFB Beale AFB Fallon NAS
Ord Community NV
CA
Fort Huachuca
Nellis AFB
Luke AFB
Fort Hunter Liggett Lemoore NAS
Yuma PG Davis-Monthan AFB
Yuma MCAS El Centro NAF
Los Angeles AFB
Imperial Beach
Vandenburg AFB March AFB FT Irwin Edwards AFB
Miramar MCAS North Island Twenty-nine Palms Barstow MCLB Port Hueneme Camp Pendleton
San Diego NS AZ
White Sands MR Holloman AFB Cannon AFB
Kirtland AFB NM
Hill AFB Dugway PG Buckley AFB
F.E. Warren AFB
USAF Academy Fort Carson Peterson AFB
WY
CO
UT
Offutt AFB
Ft Riley Ft Leavenworth
Ellsworth AFB
Grand Forks AFB Minot AFB
NE
SD
ND
MN
IA
SuperValu Bismarck
Goodfellow AFB Ft Hood
Dyess AFB Sheppard AFB
Tinker AFB Ft Sill
Altus AFB Vance AFB
McConnell AFB
TX
OK
KS MDV Junction City
Fort Bliss
Corpus Christi NAS Kingsville NAS
Lackland AFB Ft Sam Houston Randolph AFB
MDV San Antonio
Laughlin AFB
Meridian NAS Keesler AFB Gulfport NCBC
New Orleans NAS
Columbus AFB AR
LA
MS
Little Rock AFB
Ft Leonard Wood Whiteman AFB MO
IL
KY
IN
Harrison Village Rock Island Crane NSWC Scott AFB
Ft Knox Ft Campbell
Great Lakes NTC
MI
WI
Ft McCoy Selfridge ANGB
Arnold AFS
Eglin AFB Hurlburt Field
Tyndall AFB Ft Rucker
Gunter AFB Redstone Arsenal
Maxwell AFB
TN
AL
Pensacola NAS MDV NF Pensacola
SuperValu Anniston
Whiting Field NAS Kings Bay NSB Jacksonville NAS
Mayport NS
Key West NAS
Patrick AFB MacDill AFB
FL
SuperValu Quincy
SuperValu Indianola
Camp Merrill Ft McPherson
Ft Benning Moody AFB Albany MCLB GA
Charleston NWS Charleston AFB
Shaw AFB Parris Island
Ft Jackson Ft Gordon
NC
VA
New River MCAS Camp Lejeune Cherry Point MCAS Seymour Johnson AFB Ft Bragg North & South
MDV Norfolk
Annapolis Quantico Ft Belvoir Ft Myer
Ft Meade Bolling AFB Andrews AFB
Portsmouth NNSY Ft Lee Little Creek NAB Dahlgren NSWC Ft Eustis Patuxent River NAS Oceana NAS Langley AFB Norfolk
VA Forest Glen Ft Detrick DE
NJ
MD Dover AFB Lakehurst NAES McGuire AFB
MDV Landover
PA
OH
C.E. Kelly Carlisle Barracks
Wright Patterson AFB
MA RI
CT
NY Hanscom AFB Newport NS
West Point Tobyhanna AD
Picatinny Mitchel Field Fort Hamilton New London
ME
VT NH
Bangor ANGB Portsmouth NSY Fort Drum
C & S Wholesalers
Aberdeen
Hunter AAF Robins AFB Ft Stewart SC
Memphis NSA
Ft Polk Barksdale AFB
China Lake NAWS WV
DeCA Distributors
Richards Gebaur
Always Fresh
MDV NF Bloomington
MDV Columbus
SuperValu Lancaster
Sugar Grove
Fort Worth
Saratoga Springs
SuperValu Champaign
SuperValu Billings
SuperValu Mechville
MDV Oklahoma
Coastal Pacific Ontario
Coastal Pacific Stockton
Military Exchange
Market
A Closer Look 50 States
2 U.S. Territories
30 Foreign Countries
Exchange Sales Trends AAFES/MCX/CGX/NEX/VCS
Billion $
9.7 10.2
10.8 11.3 11.7 12.1 11.9 12.3
14.04 14.05 12.97 13.01 12.98
11.4
0
2
4
6
8
10
12
14
16
Exchanges AAFES, NEXCOM and Marine Corps Exchanges • Operate as Federal Instrumentalities - unique organizations within
the DoD • Self-funded, using few tax dollars • Exchanges pay their own operating costs from Revenues • Return earnings to Customers through payments to Morale,
Welfare and Recreation Activities and investments in new, renovated exchange facilities
Coast Guard Exchanges • An MWR activity; Coast Guard is part of the Department of
Homeland Security Veterans Canteens • Operates under the authority of the Department of Veterans Affairs
AAFES Profile Established: 1895
Employees: 37,000
Headquarters: 3911 S. Walton Walker Blvd. Dallas, TX 75236-1598 Phone: (214) 312-2001 Web site: www.aafes.com Major Distribution Facilities: Newport News, VA; French Camp, CA; Waco, TX; Giessen, Germany; Tokyo, Japan; Yokota, Japan; Inchon, Korea; Okinawa, Japan; Honolulu, Hawaii
CEO:
Tom Shull President-COO: Mike Howard
Selected Operations and Services: Retail Stores; On-line Shopping Concessions; Catalog Services
Food Facilities; Gas and Auto Repair Military Clothing Stores; Movie Theaters
Vending Centers, State Department Commissaries
FY 2014 Sales: $7.392.2 Billion
AAFES Regions (5)
Eastern Region
Main Exchanges
Pacific Region Main
Exchanges
European Region Main
Exchanges
Western Region Main Exchanges Central Region
Main Exchanges
Guam, Japan, S. Korea, Okinawa
Alaska
Hawaii
Puerto Rico
Italy
Germany
England
Greenland
NEXCOM Profile
FY 2014 Sales: $2.66 Billion
Established: 1946
Employees: 15,000
Headquarters: 3280 Virginia Beach Blvd. Virginia Beach, VA 23452 Phone: (757) 463-6200 Web site: www.navy-nex.com Major Distribution Facilities: Norfolk, VA; Chino, CA Pensacola, FL; Naples, Italy Honolulu, Hawaii; Yokosuka, Japan
CEO: Mr. Robert J. Bianchi
COO: Michael Good, SES
Selected Operations and Services:
Retail Stores; Concessions Food Facilities; Gas and Auto Repair
Authorized Uniform Stores Vending Centers; Ship Stores
Cuba
Guam
Puerto Rico
Japan
Hawaii
NEXCOM Districts (11)
Mid-South District
Guam District
Japan District
Hawaii District
Western District
Northwest District
Southeast District
Tidewater District (HQ)
Capitol District
European District
Northeast District
MCX Profile
FY 2014 Sales: $898.9
Established: 1897
Employees: 3543
Headquarters: 3044 Catlin Ave. Quantico, VA 23134-5103 Phone: (703) 784-3800 Web site: www.usmc-mccs.org Major Distribution Facilities: None
Director: Ms. Cindy Whitman Lacy
Deputy Director Business Operations: Ms. Jennifer Ide
Selected Operations and Services: Retail Stores; Concessions
Vending Centers; Gas and Auto Repair Food and Hospitality Facilities
MWR Programs
Marine Corps Exchanges (MCX) are a part of the Marine Corps Community Services (MCCS)
on the Marine Corps bases.
Yuma
Barstow
Quantico (MCX HQ)
Camp Allen
Henderson Hall
Cherry Point Camp Lejeune
Beaufort Parris Island
Albany
Twentynine Palms
Miramar & MCRD San Diego
Japan Iwakuni
Hawaii
Kaneohe Bay
Camp Pendleton
MCX Facilities (17)
CGES Profile
FY 2014 Sales: $158.2 Million
Established: 1945
Employees: 1,600
Headquarters: Battlefield Technology Center 1 510 Independence Pkw. Ste 500 Chesapeake, VA 23320 Phone: (757) 8424901 Lodges 26 Food & Beverage 24 Golf Courses 2 Fitness Facilities 33
Commander:
Captain Robert Whitehouse
Chief Operating Officer: John Reiley
Director of Merchandise
Beverly Hudgins Selected Operations and Services:
Retail Stores Gas Stations
MWR Programs Food Operations (franchised)
Vending Centers
CGES High-Volume Exchanges
Seattle
♠ Cape May
Cape Cod
Puerto Rico Hawaii
Honolulu
San Pedro
Alameda
Humbolt Bay
Petaluma
North Bend
Astoria Port Angeles
San Juan Borinque
Galveston Miami
Clearwater
St. Petersburg New Orleans
Mobile (2) Mayport
Charleston
Elizabeth City Portsmouth
Yorktown
Staten Island
Baltimore
New London
South Portland
North Coast,
Cleveland
Ketchikan
Kodiak
n Central Buying Office
n Core Customers: q Patients (including relatives and friends)
q Staff and Medical workers
q Volunteers
n Average Retail Store size: 1,500-1,800 sq. ft.
n Approved items are placed in VCS’ Automated Merchandise Catalog (AMC). Items on AMC are available to each canteen for ordering merchandise.
VCS Profile
VCS Profile
FY 2014 Sales: $413.4 Million
Established: 1946
Employees: 3,100
Headquarters: #1 Jefferson Barracks Road Building #25 St. Louis, MO 63125-4194 Phone: (314) 894-1200 Web site: www.vcscanteen.com Major Distribution Facilities: None
Director: Mr. Ray Tober, SES
COO: Mr. Jim Leahy, SES
Chief Merchandising Officer Mr. Carey Filer
Selected Operations and Services:
Retail Stores, Food Operations (Cafeterias) Personalized Services, Vending
Exchanges - Main Stores
NOTE: Resale systems combined operate thousands of retail operations including Main Stores, Shoppettes, Troop Stores, Package Stores, Sport Shops, Lawn and Garden, Fast Food, Military Clothing Stores, Gas Stations, etc.
CONUS OCONUS TOTAL
AAFES 98 23 121
NEXCOM 68 32 100
MCX 15 2 17
VCS 189 4 193
CGES 59 5 64
Total 429 66 495
Exchange Sales Ranking vs. America’s Top Retailers
Top 200 Global Sales Ranking
WalMart 1
CVS 14
Costco 6
Home Depot 10
Target 11
Dollar Tree 144
Lowe’s 21
Best Buy 20
Sears 22
Kohls 49
Exchange 105 Source: NRF online 2012
Exchange Resale Systems Business Drivers
• Pricing equal to or lower than best customer
• Voluntary Price Reduction (VPR) • Favorable payment terms
continued . . .
Marketing funds for:
ü In-store demos
ü Premiums, give-a-ways
ü Truckload and parking lot sales
ü Contests, sweepstakes
ü Clerk training
ü Scholarships
Exchange Resale Systems Business Drivers
• Advertising funds for:
– Weekly tabloids, In-store flyers – Special programs
• Prepaid freight
• Warehouse allowances
• Business Processes – Vendor Managed Inventory (VMI)
– Pre-ticketing for certain kinds of merchandise
Ship Stores Profile
FY 2014 Sales: $63.8 Million130 Ships-3 Stores ashore
Established: 1909
Headquarters:
3280 Virginia Beach Blvd. Virginia Beach, VA 23452 Phone: (757) 463-6200 Web site: www.navy-nex.com Major Distribution Facility: Yokosuka, Japan 130 Ships Globally
CEO
Robert J. Bianchi Vic President, Ship Stores Program:
Charlie Vaughn
Selected Operations and Services: Retail Stores; Vending Machines
Laundries; Barber Shops
What Makes Ship Stores Unique? • Investment in inventory is
constrained – limited storage and display
space • Assortments reduced to best
selling SKU’s • Majority of sales occur while
deployed • Captive market when at sea • Store hours restricted while in
port or repair yards • Requires 24-72 hour
turnaround for deliveries
MWR/ Services MWR, GSA, Department of State
Morale, Welfare and Recreation
MWR Operations
MWR
MWR is a term given to a complete range of community support, quality of life programs, services, and activities that are provided to members of the Armed Forces and their families on military installations throughout the world.
Operations • Each of the military services
operates MWR activities • Each military service has its own
MWR organization, and while they manage similar activities, each does so in its own manner within the broad policy mandates of DoD
• Operations are generally decentralized, but there is growing trend toward regional operations in Army & Navy.
Program Funding
• MWR operations are funded with a combination of tax payer funds (appropriated) and self generated funds (non-appropriated) referred to as “APF” and “NAF” respectively
• NAF is generated through the sale of goods and services by both MWR operations and the Exchanges (dividends)
Programs Categories
Source: DMDC
Categories Title Funds Program Examples “A” Mission Essential 100% APF Fitness Center, Intramural
Sports, Libraries, Rec. Centers
“B” Community Support 65% APF Child Dev. Center
35% NAF Youth Program, Outdoor Rec., Rec. Pool
“C” Business Operations 100% NAF* Clubs, Golf,Bowling,
Retail Stores, Snack Bars Restaurants, Lodging, Marinas
Category may determine type of contracting procedures utilized
q APF: Defense Federal Acquisition Regulations Supplemental q NAF: DoD and Service Specific Regulations **
n DoD Directive 4105.67 *With some limited exceptions n DoD Instruction 4105.71 ** www.defenselink.mil
MWR’s Most Frequented Facilities
Air Force Fitness Facilities Libraries Outdoor Rec. Clubs and
Entertainment
Army Fitness Facilities Gyms/fields Bowling Libraries ITT
Navy Fitness Facilities ITT Fast Food Venues Outdoor Rec. Gyms
Marines Fitness Facilities ITT Fast Food Venues Outdoor Rec. Gyms
The Military Market Facts Presentation has been brought to you by the American Logistics Association.
Advocates for Military Total Quality of Life
www.ala-national.org
American Logis:cs Associa:on