EBM EBM

THE CURRENT EDITORIAL COMMENT

 

Enough, Already! …

TO READ THE COMPLETE ISSUE OF
E and C NEWS

The articles online are highlights of the most recent E and C News. Click here for a subscription.

ECN Cover

Highlights of the May 2015 Issue

 

NEWS:
NDAA Markup Upholds Robust Resale Benefits, Rejects DeCA Budget Cuts

 

• WASHINGTON — In what could shape up to become a landmark piece of legislation that House Armed Services Committee (HASC) Chairman Mac Thornberry (R-Texas) and Ranking Member Adam Smith (D-Wash.) said takes “major steps to reform the military compensation system,” both the HASC and its Military Personnel Subcommittee stood emphatically in support of commissary and exchange non-pay compensation benefits with their marked up National Defense Authorization Act (NDAA) for 2016 (H.R. 1735) and an accompanying report (114-102).

Among its resale-related provisions, the HASC report put in place a qualified prohibition on the replacement or consolidation of the resale systems, and called for a series of protections for commissary second destination transportation (SDT) funding. ...

Carson Named Acting USD (P&R), Garcia ASD (M&RA)

 

• WASHINGTON — Decorated former member of Congress and former Navy intelligence officer Brad Carson, serving as under secretary of the Army, was named on April 2 as acting under secretary of defense for personnel and readiness (USD, P&R). Juan M. Garcia III, the assistant secretary of the Navy, Manpower and Reserve Affairs (M&RA), was nominated as the assistant secretary of defense for Manpower and Reserve Affairs (ASD, M&RA) on March 19.

Carson's assignment to the acting USD P&R role came as the Department of Defense continued its search for a permanent successor for Jessica Wright, whose resignation, tendered in December, became E and C News 12/14). ...

Levine Nominated As DCMO

 

• WASHINGTON — In pledging their support for deputy chief management officer (DCMO) nominee Peter K. Levine's promised reformation efforts during his April 21 confirmation hearing, senior Senate Armed Service Committee (SASC) leaders urged the candidate, if successful, to take advantage of his familiarity with both the Department of Defense (DoD) and the SASC to help the department rid itself of waste, fraud and abuse, and to take on issues of concern to the panel including a full audit of DoD. ...

If confirmed, Levine, who was recently nominated for the position by President Obama, would serve as the DoD's primary agent for improving the management of defense business activities. He would succeed David Tillotson III, the assistant DCMO, who has filled this role on an acting basis since May 2014, and who has recently engaged with military resale leadership on the topic of possible efficiencies among resale operations, according to sources ...

Military Resale: A $17- Billion Sales 'Thumbs-Up' for Fiscal 2014

 

Although military resale was seemingly under siege from several directions in fiscal 2014, it didn't stop military servicemembers, their families and retirees from giving their local military stores more than 17 billion thumbs-up during the year, as cumulative direct sales among exchanges and commissaries once again reached beyond $17 billion for the period.

Taken together, direct sales of the Defense Commissary Agency (DeCA), the Veterans Canteen Service (VCS) and the four exchange services — the Army & Air Force Exchange Service (AAFES), the Navy Exchange Service Command (NEXCOM), the Marine Corps Exchange (MCX), and the Coast Guard Exchange (CGX) — totaled $17.09 billion. This was a 4.3-percent decrease from the prior fiscal year's $17.85 billion tally, but not unexpected given a 4.2 percent decline in active duty military and dependent populations, and the gone-but-notforgotten “hangover” from furloughs and the government shutdown in 2013. In spite of all this, AAFES posted a double-digit earnings increase. ...

AAFES Opens New Wiesbaden Headquarters Shopping Center

 

• WIESBADEN, Germany — On April 17, the military community here celebrated the opening of the Army & Air Force Exchange Service's (AAFES) Wiesbaden Exchange Shopping Center, which serves customers in the Hainerberg Housing Area. The community warmly welcomed the new mall, which broke ground on Feb. 22, 2013. ...

With the ribbon-cutting complete, Wiesbaden military community servicemembers and families are enjoying a new 155,000-square-foot shopping center housing a main store nearly twice the size of the previous one and a food court with Burger King, Taco Bell, Charley's, Pizza Hut and Popeyes. The shopping center also includes a United Service Organizations (USO) center, bank, credit union and numerous concessions, becoming a true community hub for installation and local soldiers, families and retirees. ...

Read more NEWS ...

NEWSMAKERS:
AAFES HBC Team Receives Chattem Inc. 'Pyramid Award'

 

• DALLAS — On April 7, Chattem Inc. — represented by Dixon Marketing Inc. (DMI) — presented its Pyramid Award to the Army & Air Force Exchange Service (AAFES) as the top account in its Southern Region for 2014.

The award is given to Chattem's top accounts that show a level of excellence in true partnership; new item distribution; support for Chattem's largest programs; and ideal merchandising related to the company's array of toiletries and other Health and Beauty Care (HBC) products. ...

Red Bull 'Camo Can' Supports Wounded Combat Heroes

 

• SANTA MONICA, Calif. Red Bull's new camo-themed can, a limited edition, becomes available through military channels on Memorial Day, May 25, and will be available through the end of July. This year, the can design incorporates the Red Bull Global RallyCross series, which will be hosting an event stop this summer at a still-to-be-disclosed U.S. military base. Said to be the first-ever such event to take place on a military installation, the event will air on NBC on July 5 at 5 p.m. ...

NEXCOM's Parmentier Named 3M 'Buyer of the Year'

 

• VIRGINIA BEACH Tina Parmentier, Household Supplies buyer in the Navy Exchange Service Command's (NEXCOM) General Merchandise Group, was selected by The 3M Company as its “Buyer of the Year” for 2014.

The company asked its sales and marketing teams to nominate retail account professionals for recognition based on several key performance criteria. According to 3M, over the last four years, Parmentier has continually exceeded overall growth figures and outpaced other retailers. She has managed to cultivate both excitement and growth with Scotch-Brite, Scotchgard, and 3M branded products by more than 5 percent during this period and was able to accomplish this feat in a challenging retail environment in 2014. ...

Read the complete NEWSMAKERS ...


AAFES MEETINGS:
Exchange Impact Workshop — 'Elevates the Experience'

 

The March 17-18, 2015, Army and Air Force Exchange Service (AAFES)-American Logistics Association (ALA) Exchange Impact Workshop entitled, “Elevating the Experience,” featured the presence of around 70 AAFES Merchandising Directorate/ buying personnel, and took on a subtly more interactive format than the more formal Exchange Roundtable that it partially replaced, garnering a number of superlatives from attendees. ...

Following opening remarks by Exchange Merchandising Directorate Executive Vice President/Chief Merchandising Officer (CMO) Ana Middleton and Exchange Impact Workshop Steering Committee Chair Marty Johnson, director of sales, Government Division, E&J Gallo, the meeting switched into a series of topic-driven “overviews,” from division vice presidents, Consumables Vice President (VP) Reggie Dawson, and Hardlines VP Chris Burton, each in turn followed by “impact workshops” featuring presentations by divisional merchandise managers (DMM) and buying and replenishment staff. Each breakout was followed by “one-on-one” sessions between industry members and buying pod members. ...

Read more AAFES MEETINGS ...


DeCA HALLOWEEN PROMOTIONS: Promotional PUNCH Powers Sales

 

Halloween is a uniquely situated major promotion in the Defense Commissary Agency's (DeCA) fiscal year, straddling as it does the end of one year and the beginning of the next. That's because stock begins to arrive in early August and the sales period for the celebration lasts through the end of October, in the new fiscal year.

With a solid calendar 2014 celebration in the rear view mirror, agency sales, marketing and category management staff are preparing for another busy promotional period this fall.

DeCA Sales Director Tracie Russ reported that total Halloween promotion sales from Aug. 1 through Nov. 15, 2014, were just over $12 million, with candy and snacks accounting for more than $11 million of that total. In addition, baking, decorating and party supplies tallied $684,000 in activity with cereals — another category to see a boost in Halloween-themed products — generating $296,000. ...

Read more DeCA HALLOWEEN PROMOTIONS ...


AAFES HALLOWEEN CANDY PROMOTIONS:
Making the Season a Spooky Success

 

Although it is currently only the middle of the spring season on the calendar, preparing for Halloween is high on the list of priorities for Army & Air Force Exchange Service (AAFES) seasonal candy buying staff.

Julie Bierman, senior buyer responsible for seasonal candy, told E and C News, “There are 11 promotional weeks during the Halloween season, and tabloid features and price cuts on Halloween candy items run throughout that period. Product review and item selections for Halloween are done during the months of February and March, with products shipping in June in order to meet the lead times required for OCONUS locations.”

Following that, the floor set date for Halloween 2015 will be Aug. 14, Bierman said.

For the 2015 promotional program, Bierman said.

“There will be multiple items on promotion during the season. Lots of '2-for-' and '3-for-' deals will be featured. Segments will include candy dish and decorating, instant consumable 'treatfor- me' items as well as trick-or-treat and sharing bags.” ...

Read more AAFES HALLOWEEN CANDY PROMOTIONS ...


AAFES Name Brand Fast Food (NBFF)/Name Brand Casual Dining (NBCD): Keeping It TRENDY AND HEALTHY

 

When Army & Air Force Exchange Service (AAFES) customers want a quick bite to eat, they have numerous food options to choose from on their local installations, in particular, name brand fast food (NBFF) restaurants and name brand casual dining (NBCD) establishments. The portfolio is growing each year to more closely meet the dining needs of Exchange patrons, including providing customers a marked increase in healthier offerings at their favorite restaurants.

Two AAFES executives spoke about these dining options with E and C News. Rich Pickering is the vice president (VP), Food, Fuel and Theater Operations, and Rena Arnold is the leasing director, Business Development- Community Development Initiative (CDI).

Read more KEEPING IT TRENDY AND HEALTHY ...


DeCA PET: Caring for Their Pets

 

Military service and family members tend to form very strong bonds with their pets, and consider them as much a part of the military family as their own loved ones. Pet category sales remain significant, too, in Defense Commissary Agency (DeCA) stores, although they approximated incremental declines in the active duty force.

Fiscal 2015 year-to-date sales through March showed DeCA’s pet sales at $47.1 million based on 17.3 million units, and these were decreases of 1.26 percent and 3.35 percent, respectively, according to DeCA Paper and Laundry Category Manager Rena Dial. Dial had taken on additional category responsibilities for Pet Food and Household Products on a temporary basis from previous Pet Category Manager James Taylor, who is now Frozen Food category manager, until Hector Granado was appointed to the Pet position on April 5 (see E and C News 4/15).

Dial said that sales of $47.7 million for the corresponding period in fiscal 2014 were down 1.16 percent, with units decreasing 3.42 percent to 17.9 million from the same period in fiscal 2013.

Read more CARING FOR THEIR PETS ...


MCX Pets: ‘Only the Best for Pets as Members of Our Family’

 

Marine Corps Exchange (MCX) NAF Business and Support Services Division (NAFBSSD) Buyer Karen Macdonald, who counts the pet department among her responsibilities, told E and C News that MCX year-to-date pet sales through January 2015, the end of fiscal 2014, was $2.75 million, up 1.39 percent from the prior year; an outstanding result in a year that saw declines in other categories due to declines in force strength.

Read more 'ONLY THE BEST FOR PETS AS MEMBERS OF OUR FAMILY' ...


Snapshot
RESALE SNAPSHOT — FEBRUARY 2015

 

Click Here for “RESALE SNAPSHOT” Totals