E and C NEWS

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Highlights of April 2014 Issue

QDR Targeting Compensation, Commissaries, Rejected by HASC Chair

• WASHINGTON — Rep. Howard “Buck” McKeon (R-Calif.), chairman of the House Armed Services Committee (HASC), expressed his intention not to support the 2014 Quadrennial Defense Review (QDR), saying he would ask for a rewrite, reportedly marking the first time that an HASC chairman has rejected a major Department of Defense (DoD) strategic initiative and asked for it to be resubmitted.

Speaking at the Washington Foreign Press Center on March 5, and later at the Center for Strategic and International Studies (CSIS) on March 10, Christine E. Wormuth, deputy undersecretary of defense for strategy, plans and force development, defended the document — including its recommendations for various compensation components such as commissaries — as measures necessary to prevent the launching of sequester-level cuts that she feels might take place in fiscal 2016 if the proposed changes are not implemented.


MCX Names Daniel Buyer for Beer, Wine and Tobacco


• QUANTICO — The Marine Corps Exchange (MCX) recently named Rich Daniel as headquarters consumables buyer responsible for beer, wine and tobacco. He succeeds long-time buyer Wayne Barrett, who retired in December.

With his new position, Daniel returns to the exchange service after leaving about a year earlier. In his previous career with the MCX, Daniel was an electronics buyer responsible for cameras; video games; pre-recorded items; communications; and home office.

AAFES Names New VPs, Area and Sr. Policy Program Managers


• DALLAS — The Army & Air Force Exchange Service (AAFES) recently appointed two vice presidents to serve in its headquarters Audit and Information Technology (IT) Directorates. Effective in January, Hans Beauvais, audit group manager in the Audit Directorate, became VP of the audit division. In February, Timothy Kelly, who was consulting director Sabot Consulting, Folsom, Calif., took over as VP, Store Systems Development, in the IT Directorate.

The Exchange also announced the appointment of David Yi as Softlines senior policy program manager in the Merchandising Directorate.

At the Area level, Daniel Schmidt was named manager, South Central facilities, Central Region, based at Fort Hood, Texas. In addition Fort Carson, Colo., general manager (deployed) Pat Riordan, was named manager, Hawaii facilities, Western Region. ...

DeCA Sales Directorate

Deca Sales Team Directory — Buying Assignments

Read more NEWS ...


DeCA: Fiscal 2013 Million-Dollar Vendors


Following is a list of 234 companies that received more than $1 million in payments from the Defense Commissary Agency (DeCA) during fiscal year 2013, which ended Sept. 30, 2013. In most cases, payments made to divisions or subsidiaries or corporations appear under the corporate name. Such listings have been consolidated and are included as one sum here; asterisks indicate consolidated listings. Dollar volume shown for brokers, distributors and buy/sell firms generally reflects only amounts paid specifically to those firms and does not include payments made directly to their principals, which in many cases represent the bulk of their sales. ...



DeCA: Fiscal 2013 Vendor Payments Less than $1 Million


The Defense Commissary Agency (DeCA) has released a list of vendor payments for fiscal 2013. The list included 1,474 records ranging from $77 paid to Hibiscus Aloha Corp. to $391,683,357 paid to Tyson Foods. The records covered 1,761,535 individual payments.

In addition to 234 million-dollar vendors, who were paid $5.67 billion by DeCA, 484 vendors received payments totaling less than $1 million per company. The dollar amount of these payments, $66,260,052, is broken out by vendor on the following pages.

Some of the entries on DeCA's list have been consolidated here, combining multiple payments to a single company into one. Those consolidated listings are shown in boldface.

Although the official DeCA list spells out payments to the penny, amounts shown here have been rounded up or down to the nearest dollar. ...



DeCA: 2013 Sales by Category
DeCA vs. Civilian Markets

Data reported in the following tables is based on total sales of scannable items in “supermarket” categories maintained and captured by The Nielsen Company. Nielsen has a contract to supply the Defense Commissary Agency (DeCA) with data on category sales as well as on a variety of other retail data.

The DeCA aggregate of $3,687,092,233 broken out here represents about 82 percent of total official DeCA sales by dollar volume in the Continental U.S. (CONUS) for calendar year 2013 of approximately $4,496,097,801.

The first table covers nonperishable/semiperishable items from among 181 categories representing 65.1 percent of the aggregate; the second table, perishable items, includes 101 categories representing about 33 percent. (The tables published here show only those categories with more than $1 million in sales.)

Not included in these tables are non-scannable products, primarily random weight items such as fresh meat, poultry and fish, as well as most produce. Also not included are cigarettes and other tobacco products, which represent about 1.8 percent of total DeCA CONUS sales.

Sales information shown here was compiled from data gathered during the 52-week period ending Dec. 21, 2013. Data for DeCA, as well as the civilian market, reflects sales only in CONUS, excluding Alaska and Hawaii. Categories are listed in descending order by DeCA dollar volume.

DeCA is in the process of reallocating categories and buying teams, and subdivisions shown here may no longer apply. The sales period covered includes furlough days and the October 2013 government shutdown. ...



DeCA Interview
'The Backbone of Support to the Commissary System'

DeCA Executive Director, Infrastructure Support Group, Vicki Archileti, SES
Although Vicki Archileti, SES, executive director of DeCA's Infrastructure Support Group, leads several large areas of responsibility that encompass Information Technology (IT), Logistics, Engineering, and Acquisition Management, she understands there are no point-of-sale (POS) registers at headquarters, and as a result, is directly focused on the ultimate results and objectives of these directorates' collaborative work — strong sustaining support to DeCA's worldwide network of stores and vital headquarters functions. In this exclusive interview, she discusses her vision of the synergies among these directorates, and the new and ongoing programs and capabilities that are being designed or procured to maintain and improve the relevance of the commissary benefit in the 21st century.

On the direction and priorities Archileti has set, and will be setting, as executive director of the infrastructure support group ...

As director of the Infrastructure Support Group, I'm responsible for four subordinate directorates that support our commissaries: Information Technology (IT); Logistics; Engineering; and Acquisition Management. I am excited to serve in this position because I feel these four areas are the backbone of support to the commissary system.

My three overarching tenets communicated to the staff are (1) to improve support levels to our stores to allow them to concentrate on selling groceries; (2) to reduce operational costs, for DeCA as well as our industry partners; and (3) to modernize our business processes and make the Enterprise Business System (EBS) a reality.

We have many ongoing activities that will support our priorities. We have our direct activities that we see being major enhancements to the agency, but we are also working with the other groups — Sales, Marketing and Policy and Store Operations — to support their initiatives as well.

DeCA Director Joseph H. Jeu has challenged us to stretch ourselves on a number of fronts, and has set forth several driving objectives:

• Revitalize our sales strategy;
• Drive a performance culture;
• Understand our customers;
• Leverage our workforce;
• Increase our agility;
• Continue fiscal responsibility; and
• Lead with honesty and transparency.

The Infrastructure Support Group will lead some of these objectives and render support to others. The important thing is that all three group executive directors — myself, Rogers E. Campbell for Sales, Marketing and Policy, and Keith C. Hagenbuch for Store Operations — meet regularly and are committed to moving forward. We recognize that each group is dependent upon each other to achieve the agency's goals, so it has been a great collaborative experience. ...


NEXCOM Vitamins, Supplements, Energy Foods:
Healthy Attitude, Healthy Sales

Good health is not only a strong area of emphasis among Department of Defense (DoD) organizations, it is at the center of lifestyle choices that many Navy servicemembers and families have adopted to keep themselves shipshape. Strong sales growth in several related categories from the Navy Exchange Service Command (NEXCOM) suggest that health has indeed become prioritized by many patrons on their visits to their local NEX.

NEXCOM Sports Nutrition, Vitamins, Diet and GNC Buyer Grace Cook reported that total vitamins and supplements department sales during recently concluded fiscal 2013 were more than $29 million, a healthy 21-percent increase from the prior fiscal year.

“The vitamins and supplements category has continued its steady growth as customers take a greater interest in promoting good health by adding these products to their daily diets,” Cook said. “Our customers are looking for products to help them meet their fitness goals of being healthy, having more energy, getting toned, losing weight and building muscle. ...



AAFES Convenience Stores: Refining the Focus on Customer Preferences

Military convenience stores, including those on Army & Air Force Exchange Service (AAFES) installations, have had to adapt to a number of recent changes while continuing to fulfill their main goal of providing quick, in-and-out options to customers on the go.


David Arens, divisional merchandise manager (DMM), Retail Food, in the exchange service's Main Store Consumables Division, said that the continued deglamorization of tobacco and alcohol products on military installations has impacted AAFES's convenience store roster, but it also has allowed the exchange service to focus on other important facets of these stores, refining them and making them even more customer-friendly.

“We are evaluating potential floor plan options,” he noted. “Snacking is a growing store segment as the Exchange looks to grow space and possibly launch a new premium snacking section. Merchandising adjacencies are being analyzed for optimal cross-merchandising of products. Fixtures are being evaluated for performance results versus new potential product changes in the future.”

Sheila R. Whitfield, AAFES senior buyer, Consumables told E and C News, “Declining tobacco and other tobacco products (OTP) sales have given the Exchange the platform to add new brands of top-selling items into the store assortment that offer alternatives to traditional tobacco resources.”...



AAFES Food Programs/Convenience Stores: AAFES Promotes Healthy Living through Food Choices

• DALLAS — According to information research provider Statistic Brain, more than 35 percent of Americans have already broken their New Year's resolutions; however, the Army & Air Force Exchange Service (AAFES) is doing its part to make it easier for troops, and their families, to maintain their “bottom lines” and a trim shape, when making dining choices on and off duty.

“The Exchange plays a large role in the lives of military members and their families,” said the Exchange's chief of staff, Col. Thomas Ockenfels, USA. “As such, it is extremely important that we are providing them healthy options wherever they are called to serve.”

Whether it's a matter of a wider array of healthy food choices found in the Exchange School Meal Program, or simply getting a bite to eat at an installation food court or Express, the Exchange's goal is to help servicemembers and families continue to stick to their dietary plans while eating outside the home. ...



RESALE SNAPSHOT — January 2014
"The 4-5-4 Retail Calendar Effect"**


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