Tom Shull, Director/CEO of The Exchange, here for a live Q&A Wednesday. What questions do you have about the new Veteran benefit?

David, many thanks for the great question and thank you for setting this up.

The Exchange’s unique capabilities were fully tested during the recent hurricanes, from its distribution centers to its stores, in support of first responders as well as service members and their families. While other retailers closed up shop, the Exchange sent support by air, land and sea to those who needed it most.

In Puerto Rico, even before Hurricane Maria made landfall, the Exchange team began funneling emergency shipments of supplies, such as generators, batteries and water, to areas in the storm’s path. As Maria’s intensity grew, an emergency list of health and personal care products, as well as pallets of bottled water, were staged throughout the southeast for immediate shipment, with a focus on the fastest methods of transportation once the storm had passed.

Additionally, just last week, the Exchange opened a Mobile Field Exchange in support of relief efforts in Puerto Rico. An MFE is a retail store in a 53-foot trailer that carries merchandise such as snacks, drinks and toiletries. MFEs, designed to move at a moment’s notice to support troops across the world, are used in operations where no permanent Exchange facilities are available.

Our Main Store at Ft. Buchanan was up and running just days after Maria devastated the island. Exchange associates were honored to show up to work quickly even though in many cases their own families had been significantly impacted by the effects of the storm as well.

Prior to that, for Hurricane Harvey, the Exchange deployed an MFE to support first responders in the Houston area as well near Corpus Christi.

In the case of Irma, as it threatened the southeast, the Exchange Logistics team sent truckloads of bottled water to Florida and Georgia. They also ensured there was sufficient emergency items in stock for support, such as generators, batteries, flashlights, tarps, gas cans and first-aid kits. In all, the Exchange delivered 50 million gallons of gasoline, 47,500 bottles of water, 8,302 batteries, 246 generators, 4,000 bags of ice and 47 truckloads of merchandise.

Go Army! Beat Navy!

Soldier for Life!

Bill, thank you for your service and for all the great things you do for our military community. At present, we need to share the good news about this first expansion of military exchange benefits in 27 years. We are honored to welcome home our nation's Veterans. As a Vietnam-era Veteran who commanded troops having just returned from Vietnam, it's truly an honor to acknowledge the service of all who have served. None of my Soldiers were given the homecoming their service rightfully warranted and many suffered from what was then called combat fatigue and is now properly diagnosed as PTSD.

MSgt, thank you for your service and your question.

The MILITARY STAR credit card program was approved by Congress in 1979 to protect service members from predatory lending. Offering affordable and responsible credit solutions to the military community continues to be a core mission for the program today. A hallmark of MILITARY STAR is its competitive APR of 11.24%, ranking as one of the lowest retail credit card APRs by creditcards.com. The card provides other money-saving benefits, including:

• 0% interest military clothing line of credit
• 0% interest financing opportunities throughout the year
• 10% off first day’s purchases
• Free standard shipping at Shopmyexchange.com and mynavyexchange.com
• 5 cents per gallon fuel discount at Army & Air Force Exchange Service fuel stations
• 10% Exchange restaurant discount at Army & Air Force Exchange Service locations
• A $20 reward card after 2,000 points earned with the MILITARY STAR Rewards program

The card provides those with limited credit history an affordable way to establish credit and a solid financial foundation.

Unlike traditional retail credit cards, MILITARY STAR does not charge late or over-limit fees; nor does it rush to report missed payments to the credit bureaus. The Exchange Credit Program has given $727M to Quality-of-Life programs, including combat uniforms below cost, Army Fitness Centers and Child Development Centers, Air Force Outdoor Recreation and school lunches for Warfighters’ children overseas, over the last 10 years.

Maj Shull - In all that you stated you said to remain competitive. I entered the military in the early 80's and during those days a service member could afford to do anything on base. Today we want our military community being inundated with products that could be found off base. We are special because we volunteered to live in this community. If we wanted competitive shopping deals we would lobby department stores. We want our military shopping affordable to those of us who need it and should not be separately priced because we choose to pay today vs give a financial institution all of our personal information to make a purchase.

1SG, thank you for your question and your service.

When you shop your Exchange you are highly value customer. Commercial department stores owned by public shareholders have a duty to enrich their shareholders. The Exchange's duty is to those who serve. As a result, 100% of Exchange earnings support our military communities (please see previous responses).

So now one who has a Star card is more valued than the service member that does not. This is division and certainly not inclusion. I want to pay you now for What I take from you store. I was taught that. Now because I was raised andntaught to save now and purchase tomorrow I am penalized. UNFAIR.

Capt Charters, thank you for your question and your service!

From technology upgrades to associate training to inventory planning, the Exchange has been working to prepare for the launch of the Veterans online shopping benefit this Saturday (find out more at https://www.shopmyexchange.com/veterans) since it was first proposed four years ago.

Some of the preparation in the Exchange’s distribution centers includes an updated warehouse management and transportation management system, dedicated capacity for e-commerce order fulfillment and additional training for associates who will be handling increased online orders.

The Exchange’s online store at ShopMyExchange.com is faster, easier and more intuitive than ever following a series of customer-focused enhancements and implementation of enhanced Business Intelligence tools.

While the site’s overall design is largely unchanged, several new functional improvements have been implemented to streamline the customer experience, including:

• A re-engineered mobile site that adapts to all mobile devices.
• Enhanced shopper capacity, with 30,000 now able to shop simultaneously.
• Near-real-time inventory updates so customers know when items are in stock and ready to ship.

As a result of these efforts, most of the needed business capabilities are already in place, and the Exchange will be ready for a smooth rollout on Veterans Day.

CDR, thank you for your service!

AR 215-8 and AFI 34-211(I) state that overseas shopping privileges are not automatic or uniform because they are set by Command (not the Exchange) based solely on applicable international agreements (para 7-2). Rationing of certain items can be required under an international agreement to prevent/deter black marketing of tax-free goods on the host nation’s economy. Additionally, Army Garrisons and USAF MAJCOMs have responsibility to implement and enforce ration controls (para 2-3h(3)).

As it is, the Command determines and implements ration controls. Use of technology as suggested by your question to streamline the buying process would have to be something that the Army and USAF would need to support and address.

Thank you for the excellent insights, MAJ Tom Shull ! I hope that the Army, Air Force, and The Exchange can work better together and innovate processes and technologies that broaden The Exchange customer base overseas while continuing to prevent and deter black marketing in the host nations where we serve. Best wishes to you and The Exchange for continued success. Happy Veteran's Day.

I had to use the ration card while stationed in Germany from 1972to 1975. We did not have a lot of problems then. Has the situation gotten worse since then?

There's no sugar coating it, CPT Earl George , yes, sadly such criminal activity remains even today. With the Exchange offering goods at better quality and pricing than available on the open market in the countries in which we are deployed, this will always be a problem. How can we better serve those authorized to use Exchange services and still prevent abuse? I believe there is technology developed since 1975 that can be used in this fight to help enhance customer use and prevent criminal abuse. Thank you. MAJ Tom Shull

CPT thank you for your service.

Please know the Exchange receives a modest appropriation for Second Destination Transportation costs. This statutory requirement is intended to benefit readiness and resiliency of Transportation Management Command and does not affect pricing however it does enable TRANSCOM to be more efficient in its mission to support Warfighters and their families.

The Exchange’s current overall Market Basket Survey shows before-tax savings of 21.6% as compared to the competitive landscape. In the event a lower price is found elsewhere, the Exchange price matches to ensure you always receive the best value.

The Exchange's value to the military goes beyond what's found in our stores. Our earnings generate dividends that support critical Quality-of-Life programs. In the past decade, $4.2 billion in earnings have been generated in support of these essential yet increasingly budget constrained programs including combat uniforms below cost, Army Child Development Centers, Youth Programs and Fitness Centers, Air Force Outdoor Recreation and affordable school lunches for Warfighters’ children overseas. The Exchange is a strong supporter of readiness and resiliency of our military and its families. We are all in for those who serve!

The movement toward internet sales has resulted in a revamp of the Exchange’s online store at ShopMyExchange.com. The site is now faster, easier and more intuitive than ever following a series of customer-focused enhancements.

Robert, fully understand...online shopping is the way of the future. The Exchange's online capability continues to evolve with industry as we remain competitive in this arena. Our customer satisfaction is 79 as compared to an industry average of 71 and with most department stores with ratings in the 60s. The value ShopMyExchange.com provides the broader military community (in the form of dividends for military Quality-of-Life programs) mandates constant improvement and a vigilant focus on enhancing the customer experience. This is a journey, not a destination!

With inclusion of online shopping, add me to the list of more customers. The closest VA exchange is 1 1/2 hr drive, though my wife works in an adjacent building to it.
.

Carlos, excellent question! Thank you for your service and for shopping your exchange.

There are potentially 18.5 million honorably discharged Veterans that will be eligible to shop online.

Allowing honorably discharged Veterans to shop online strengthens the online experience to better serve the entire military community. As military retailers grow larger, they stand to offer a broader and better merchandise assortment at more competitive prices with increased customer-valued service options. Honorably discharged Veterans are expected to double the exchanges’ online presence, thereby improving the exchange benefit for all shoppers.

MAJ Tom Shull - Great info. Thanks!

SPC Stephenson, thank you for your service!

The most difficult MFE to deploy was in Q West, a FOB in on the west side of Mosul, Iraq, earlier this year.

Logistical challenges included authorizations for border crossings, clearances and vetting of personnel working there. Initially, the only power available at that location was through generators and establishing power through traditional means took a significant amount of time. Finally, satellite problems were also an issue, which initially affected running the registers.

Eventually all logistical roadblocks were cleared, and the MFE is fully operational, much to the delight of the troops stationed at that location who are enjoying a taste of home.

I understand Q-West was a mess after ISIS was forced out. Great job sir to an incredible effort to get an exchange up a running.