Army and Air Force Exchange Service - Mission

Mission

The Exchange is charged with generating reasonable earnings, but returns roughly two-thirds of its net earnings to its customer base through their respective MWR programs . The only congressionally appropriated money spent in the Exchange comes in the form of utilities and transportation of merchandise to overseas exchanges and for salaries of U.S. military personnel assigned to the Exchange . A non-appropriated fund instrumentality (NAFI) of the Department of Defense, the Exchange funds 98% of its operating budget, including civilian employee salaries, inventory investments, utilities and capital investments for equipment, vehicles and facilities, from the sale of merchandise, food and services to customers.

Roughly 67% of the Exchange earnings are paid to MWR programs. In the last ten years, more than $2.24 billion has been contributed by the Exchange to the Army and Air Force to spend on quality of life improvements for Soldiers, Airmen and their families—Youth Services, Armed Forces Recreation Centers, arts and crafts, aquatic centers, post functions and golf courses.

In Fiscal Year 2011, the Exchange earned $489 million from direct sales (retail, food, and vending/services), finance revenue, and concessions on revenues of $9.1 billion. MWR and services programs received $203.3 million, which was distributed as follows:

• U.S. Army, $121.3 million
• U.S. Air Force, $68.8 million
• U.S. Marine Corps, $12.1 million
• U.S. Navy, $1.1 million

The per capita dividend in 2011 was $212 for every Soldier and Airman.

In addition to funding MWR programs, the Exchange earnings are used to build new stores or renovate existing facilities without expense to the federal government. Funds to construct these new or replacement facilities come entirely from sales of merchandise and services.

The Exchange is also a major source of employment for members of the U.S. Army and Air Force family. Approximately 31% of the 47,323 the Exchange associates are military family members. Many associates have worked for years with the Exchange as they moved from one installation to another with their military sponsors. Another 1.9% of associates are military members who work part time in exchanges during their off duty hours.

The Exchange operates more than 3,100 facilities worldwide, in more than 30 countries, five U.S. territories, all 50 states and the District of Columbia. The Exchange operates some 151 retail stores and more than 2,000 fast food restaurants, such as Taco Bell, Burger King, Popeyes and Cinnabon. The Exchange also provides military communities with convenience, specialty stores and movie theaters on installations worldwide. Many of these specialty stores are operated concessionaires. These concessionaires are third parties that are allowed to sell merchandise inside the Exchange operated facilities provided that the Exchange receives a set percentage of the earnings. Many of these concession shops are found in overseas locations and specialize in locally themed merchandise such as home decor, furniture, clothing, pottery, and other merchandise and even include locations in Operations Enduring Freedom (such as Camp Phoenix) and Operation Iraqi Freedom (Camp Liberty).

In the spring of 2007, the largest PX (Post Exchange) in the world opened on Fort Campbell, Kentucky.

In 2009, the new exchange built at Ramstein Air Base in Kaiserslautern, Germany became the largest exchange facility in the world.

On its website, the Exchange states its business aim is "to serve Soldiers, Airmen and their families around the world."