EVP/CFO Jim Jordan – My Top Priority: the Success of the Exchange

What are your top priorities as chief
financial officer?

I have three basic priorities. The first is to support Exchange directorates with financial information so they can make decisions to ensure our continued stature as a top 75 retailer.

The second is to continue to educate associates and customers about the importance of the MILITARY STAR_® card. The MILITARY STAR card has an outstanding loyalty program that automatically rewards each user with a $20 rewards card for every $1,000 spent. For everyday savings, card users save 5 cents a gallon on every gas purchase and 10 percent off their food court purchases.

I want to ensure the financial strength of our employees’ benefits program. That means keeping healthcare cost low and affordable, and also to keep our pension plan as strong as it is now.

MILITARY STAR card users will strengthen the Exchange financially and increase dividends with every use, even if they pay it off monthly. The MILITARY STAR card is an internal card, so we avoid commercial credit card fees. We avoided $25 million in fees last year, but we still paid almost $100 million in other credit cards fees. We could add tens of millions to our earnings, and consequently dividends, without making one additional dollar. By buying what you normally buy and using the MILITARY STAR card, we could reduce overall expenses and could worry less about supplies and personal cost.

My third priority is to ensure the financial strength of our employees’ benefits program. That means keeping healthcare cost low and affordable, and also to keep our pension plan as strong as it is now.

The Exchange pension plan is ranked among the country’s top five plans. My goal is to ensure it remains financially stable.

Do you expect any challenges and how do you plan to overcome them?

The retail environment is challenging, even to off-base retailers. There is a move away from brick and mortar.

The good news is our eCommerce program continues to grow and mature to meet these challenges. Our brick-and-mortar facilities, with the help of our strategic priorities Increasing National Brands, Growing the Express and Growing Concessions, will also meet these challenges. 

There are challenges in the financial world with interest rates as they are. The Exchange is a net borrower with the MILITARY STAR card. When interest rates go up, so will our prime rates. We are diversifying our debt portfolio to find lower interest options.

The election itself is a challenge, because regardless of who wins, there will be change, and with any change comes challenges.

What is your philosophy on leadership and motivating associates?

I try to be a servant leader.  I will push an associate to help them recognize their potential. I want associates to be free thinkers, control their own futures and bring solutions to the table.

I want to create a relaxed environment where all ideas are heard, considered and built upon. I can’t do this myself. I didn’t become CFO on my own. Every team I have ever been on has been valuable and the mentorship I received outstanding. Through my leadership, I want to give that back by offering unlimited opportunity and to help build future leaders.

Is there anything else you would like associates to know about you and your plans for FA and the Exchange?

I want everyone to know I take my responsibility as the financial steward of the Exchange very seriously. I am here to not only look out for Exchange associates, but also for the continued benefit of our military members. During the past 10 years, the Exchange has given almost $2.5 billion to the Army and Air Force for their  quality-of-life programs. I aim to continue, and even increase  this, while fostering an environment in which our associates can look forward to coming to work and take pride in telling their neighbors where they work and what they do.

If our associates don’t shop us and realize our tremendous value, how are we going to convince our military customer about the value of our brand? 

Associates should remember that the Exchange is a world-class retailer doing a job that no other retailer does. The Exchange should be our first choice for shopping locally or online. If our associates don’t shop us and realize our tremendous value, how are we going to convince our military customers about the value of our brand? We need to work together to show our customers the honor and respect they deserve for their considerable, consistent sacrifices  and bring the Exchange into the future with not only another 121 years, but 10 times that amount.