WORDS FROM THE DIRECTOR/CEO | Tom Shull


Soldiers, Airmen and their families. A lot has changed in those 12-


plus decades. What began on the American frontier as individu- al Army post exchanges, often one- room stores, is now a single global $8.5 billion enterprise and No. 52 on the National Retail Federation’s top 100 retailers list. The Exchange can be found at Army and Air Force in- stallations around the world and Marine installations in Okinawa. We also serve all four services deployed to Iraq and Afghanistan.


2015—an amazing year Because of you, 2015 was an


amazing year for the Exchange with record-breaking earnings of $401.6 million, surpassing our 2015 goal by $35.4 million, an all-time high. Furthermore, our 2015 operational performance led the retail industry. These earnings are all the more


impressive given the significant drawdown of military operations in Afghanistan and active-duty Soldiers worldwide. The active-du- ty Army and Air Force shrank by


Congratulations on 121 Years of Service! T


his month, the Exchange cel- ebrates 121 years of serving


30,000—3.5 percent. Compounding the smaller active-duty customer base were the seismic shifts con- fronting the retail industry. The re- tail landscape of 2015, like previous years, was very competitive, causing other retailers to close their doors or suffer weak earnings. Our record 2015 earnings distrib-


uted $237.2 million in dividends to Army MWR and Air Force Services, $13 million more than last year! In the DoD’s constrained budgetary en- vironment, these funds are vital to supporting quality-of-life programs on which military families de- pend. The better we serve Soldiers, Airmen, and their families, the bet- ter prepared they are to serve.


❛Few organizations have such a noble cause. ❜


Each generation of Exchange as-


sociates must face its unique set of strategic challenges. The legacy of past associates is amazing. Today’s generation of associates is writing its own proud legacy. To better serve our customers


today and into the future, in 2015, the Exchange opened modern, 100,000-square-foot shopping cen- ters, featuring food courts and ser- vice facilities like spas and dine- in eateries, at Fort Hood, Texas and Wiesbaden, Germany—a far


cry


from the tents and wooden shacks of a century ago. We owe our cus- tomers the best retail experience possible. The Exchange is committed to


Director/CEO Tom Shull greets vendors at Travis AFB.


2 EXCHANGE POST |


bringing an American experience wherever our customers serve. In 2015, we started baking fresh Krispy Kreme donuts in Europe.


JULY 2016


Director/CEO Tom Shull speaks with command at Fort Hood.


Our strengthened relationships with movie studios enabled the Exchange to premiere blockbuster movies simultaneously as civilian theaters in the States. For example, in December, nearly 11,000 service members in the Middle East watched Disney’s “Star Wars: The Force Awakens.” Afterwards, the four-star commander in Afghanistan wrote the Exchange had “made a real dif- ference in the lives of those who serve our great nation,” significant- ly increasing morale during the holi- day season.


121 years of outstanding service Although the Exchange has grown


substantially since its humble be- ginnings, its mission remains the same—to improve the lives of mil- itary members and their families, wherever they serve. Few organiza- tions have such a noble cause. Congratulations to Associates,


past and present, on 121 years of outstanding service to Soldiers, Airmen and their families. The Exchange has accomplished a lot in its first 121 years. It is well posi- tioned to continue that tradition for many decades to come.


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