Posted on Jan 20, 2016
Should the PX/BX/MCX/NX change out expensive brands to meet service members pocket books?
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Should the PX/BX/MCX/NX change out expensive brands to meet service members pocket books?
Have you ever noticed all the high end brand names in the Exchange Stores?
Most of the items that young families need is cheaper at Walmart, or other off post discount stores, even with the "no tax" benefit.
Should be have an Exchange that will allow our younger enlisted, junior NCOs, and Junior Officers and their families get more for their money, along with the tax benefit?
I'm not saying we should do away with our Exchange system, but should we have an outlet where our service member can compete with inflation and at least match or beat the prices at a Walmart?
How about a contract with Walmart to provide and distribute products on our bases (sundry items mostly) without the taxes as their support for our military service members (located them in the Exchange), so we don't take business away from the current system. Instead provide a bigger benefit for younger service members and their families.
Have you ever noticed all the high end brand names in the Exchange Stores?
Most of the items that young families need is cheaper at Walmart, or other off post discount stores, even with the "no tax" benefit.
Should be have an Exchange that will allow our younger enlisted, junior NCOs, and Junior Officers and their families get more for their money, along with the tax benefit?
I'm not saying we should do away with our Exchange system, but should we have an outlet where our service member can compete with inflation and at least match or beat the prices at a Walmart?
How about a contract with Walmart to provide and distribute products on our bases (sundry items mostly) without the taxes as their support for our military service members (located them in the Exchange), so we don't take business away from the current system. Instead provide a bigger benefit for younger service members and their families.
Walmart
Money
Budget
Edited 9 y ago
Posted 9 y ago
Responses: 23
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How are we going to keep the moral of the spouses up if we don't offer coach purses?
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SGT Kristin Wiley
MSG (Join to see) I personally don't have a family to support, so the name brand stuff doesn't bother me too much. If anything, I appreciate being able to get good quality at a lower price.
My main concern is still the fact there are civilian clothing policies on military bases, and these AAFES stores do not sell clothing that meets the standards of those policies. If AAFES does not sell merchandise that meets standards, then it doesn't meet the needs of the soldiers and their families. If there is no way to get a commercial realtor to sell things within policy, then Garrison Commanders need to revisit these policies. It becomes a leadership failure when a financial burden is placed on soldiers to meet the standards of these garrison policies. What concerns me the most is how out of touch these leaders are with the soldiers residing on these installations, and this is evident in many of the support/service functions on base.
My main concern is still the fact there are civilian clothing policies on military bases, and these AAFES stores do not sell clothing that meets the standards of those policies. If AAFES does not sell merchandise that meets standards, then it doesn't meet the needs of the soldiers and their families. If there is no way to get a commercial realtor to sell things within policy, then Garrison Commanders need to revisit these policies. It becomes a leadership failure when a financial burden is placed on soldiers to meet the standards of these garrison policies. What concerns me the most is how out of touch these leaders are with the soldiers residing on these installations, and this is evident in many of the support/service functions on base.
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MSG (Join to see)
SGT Kristin Wiley - See, there you go again speaking with logic and common sense. HOW DARE YOU???!!!
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COL Mikel J. Burroughs
SGT Kristin Wiley My wife works right across from them and the temptation is going to break my bank one day! Nice response - LOL!
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It's not the "brands" that are the issue at the Exchange. It's the Model.
The Exchange uses what is an arguably "outdated" (on the verge of obsolete) Model of Retail Sales. Walmart and most of other retail establishments use a more Modern standard.
The Walmart Model (Modern) owns its own distribution from "birth to grave." Each product (group) goes into a centralized distribution, where Walmart sends to to stores and restocks it based on their own systems.
The Exchange system uses "stockers" who work for the "product vendors" and resupply as needed. There are inventory planners as well (paralleling the Modern system), but this system is decentralized to the store level much more than Walmart which makes it much "slower" and harder to compete with outside providers.
The concept of the Exchange is GREAT. The execution of the Exchange however needs to be modernized if we want it to compete. It's not about brands (though that may help). We must remember that Walmart has "house brands" which they own, further reducing cost.
So when we talk about reducing cost to families, products is one part... but we may end up driving people to better providers of similar products. Why shop at the Exchange for "cheap products" when you can go to Walmart for "cheap products" with a better selection.
Edit: Word
The Exchange uses what is an arguably "outdated" (on the verge of obsolete) Model of Retail Sales. Walmart and most of other retail establishments use a more Modern standard.
The Walmart Model (Modern) owns its own distribution from "birth to grave." Each product (group) goes into a centralized distribution, where Walmart sends to to stores and restocks it based on their own systems.
The Exchange system uses "stockers" who work for the "product vendors" and resupply as needed. There are inventory planners as well (paralleling the Modern system), but this system is decentralized to the store level much more than Walmart which makes it much "slower" and harder to compete with outside providers.
The concept of the Exchange is GREAT. The execution of the Exchange however needs to be modernized if we want it to compete. It's not about brands (though that may help). We must remember that Walmart has "house brands" which they own, further reducing cost.
So when we talk about reducing cost to families, products is one part... but we may end up driving people to better providers of similar products. Why shop at the Exchange for "cheap products" when you can go to Walmart for "cheap products" with a better selection.
Edit: Word
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Sgt Aaron Kennedy, MS
COL Mikel J. Burroughs & Lt Col Pat Knell Smith There's definitely issues with the Brands, but the Model is the underlying cause. The Brands are the symptom.
Until we "restructure" the Exchange System to more closely parallel modern retail establishments, we're going to see this issue become worse and worse. The Exchange (et al) can't compete at the low end because Walmart has house vendors and better selection, and a generally larger footprint. That leaves them in the odd position of having to "try" and compete at the high end (which doesn't work).
It get's really bizarre because you have to break the exchange down into component parts (departments) which are controlled by the Exchange Warehouse system, and those which are "allocated floorspace" which are stocked by product vendors (much like super markets.. think Chips, Drinks, and Cereal). When you remove things like electronics & media (draw items but limited aka zero profit), you are left with two very broad categories of "cheap" (but not competitive), and "expensive" (but no one can afford).
The simplest solution is merely to offer Walmart/Target/KMart a Exchange Contract for 2 years (by region) with a couple options years, and a strict requirement that they cannot deviate from normal pricing. They pay a rental fee (space) to MWR, but not the normal "percentage" we would for most vendors.
Until we "restructure" the Exchange System to more closely parallel modern retail establishments, we're going to see this issue become worse and worse. The Exchange (et al) can't compete at the low end because Walmart has house vendors and better selection, and a generally larger footprint. That leaves them in the odd position of having to "try" and compete at the high end (which doesn't work).
It get's really bizarre because you have to break the exchange down into component parts (departments) which are controlled by the Exchange Warehouse system, and those which are "allocated floorspace" which are stocked by product vendors (much like super markets.. think Chips, Drinks, and Cereal). When you remove things like electronics & media (draw items but limited aka zero profit), you are left with two very broad categories of "cheap" (but not competitive), and "expensive" (but no one can afford).
The simplest solution is merely to offer Walmart/Target/KMart a Exchange Contract for 2 years (by region) with a couple options years, and a strict requirement that they cannot deviate from normal pricing. They pay a rental fee (space) to MWR, but not the normal "percentage" we would for most vendors.
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Maj Dennis Maynard
I think there is a little confusion between commissary and BX here. The former has stockers while AAFES controls things from the "corporate" level shipping whatever they want even if the store doesn't need it.
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Sgt Aaron Kennedy, MS
Maj Dennis Maynard - The PX/BX/MCX uses "stockers" as well. You have a Corporate level Warehouse System (Model Similar to Walmart), but there is also a Store level "Planner" who coordinates with specific vendors, and allocates space based on what they think they'll need. I ran into this when I was a vendor to the exchange system (we sold guns & accessories directly to the NEX/MCX individual stores). It's a "hybrid" system.
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Sgt Aaron Kennedy, MS
TSgt Brian A. I was a "National Distributor" (Wholesaler) but serviced the local exchanges. If the Exchange System hadn't gotten something in there system via their wholesale system, they can purchase through other Wholesalers (like myself) to meet their needs. The base gun shops are one of the biggest Departments to do this, but there are others that the Planners will go through. Like I said, "hybrid" system.
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You mean........like those very expensive boots they sell that we are not authorized to wear?
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