Director/CEO Tom Shull Opens MSM/GM Conference With Message About Exchange Strength

The theme of the first MSM/GM Conference since 2019 is “Exchange Strong,” words that Director/CEO Tom Shull underscored in opening remarks about the strength of the Exchange, and about plans to build on that strength.

“You protect, nurture, train and encourage your teams,” Shull told more than 200 general and main store managers. “‘Encourage’ means ‘to give courage.’ This is mission number one for all of us. It’s what you do each day to strengthen the benefits we are honored to provide our Nation’s Soldiers, Airmen, Guardians and their families.”

Initial financial reporting shows the Exchange exceeded sales and earnings targets for FY22 (final results will be available after a third-party audit is finished this spring), allowing the organization to provide higher-than-planned dividends for Quality-of-Life programs for Soldiers, Airmen, Guardians and their families.

Among Exchange achievements and how the Exchange will build on them:

MILITARY STAR expansion: During the first quarter of 2023, the Exchange Credit Program finalized a contract with Discover Financial Services (owner of the Discover card). The agreement will allow the MILITARY STAR card to provide tap-to-pay, secure EMV (simpler, quicker and more secure checkout) and mobile wallet options while significantly expanding integration and acceptances across military installations worldwide. The partnership is expected to launch in the fourth quarter, with full rollout in FY24.

This is part of the MILITARY STAR expansion project, which aims to provide integration and acceptance of the MILITARY STAR card across the military resale community, partners and third-party vendors. The expansion will make it more efficient to do business with the Exchange while reducing costs associated with card acceptance.

Self-checkout: One of 2022’s biggest successes, self-checkout, was available in more than 116 PXs, BXs and Expresses by the end of the fiscal year, only 10 months after its launch. The technology—which has been popular with service members and their families, reduces customer wait times and frees teammates to assist shoppers on the floor—will expand to more than 400 stores in 2023.

ShopMyExchange.com expansion: In 2022, ShopMyExchange.com transformed through an expanded vendor and retail collaborations that allow e-commerce to ship tax-free items directly from third-party vendors. More than 100 drop-ship vendors were added in 2022, with 250 more expected to be added in 2023. The Home Depot is set to launch in the spring to fulfill in-store and online appliance orders in CONUS.

HQ Expense Reduction: Exchange leaders are fully focused on maximizing efficiency throughout the company. To facilitate the process, a consultant has been engaged to assist with creating a game plan to align overhead expenses and resources to effectively compete with the marketplace.

“Full credit to our teams in the field for the great work being done to manage costs,” Shull told the attendees. “Productivity in our stores is up 12%! We will ensure HQ staffing is properly scoped to protect and preserve the long-term viability of the hard-earned benefits our team is privileged to provide Warfighters and their families.”

Shull encouraged conference attendees to continue to initiate and sustain contact with command leadership and inform them about expanded shopping privileges for Department of Defense and Coast Guard civilians and retirees. He also encouraged managers to tell command about the benefits of the MILITARY STAR card and the Exchange’s employment opportunities for military spouses.

Shull provided an update on the nine Army installations that are undergoing name changes this year. The first of those changes occurred March 24, when Fort Pickett in Virginia became Fort Barfoot, named in honor of Army Tech Sgt. Van T. Barfoot, who received the Medal of Honor for his actions with the 45th Infantry Division in Italy in 1944.

The next change is expected to take place April 10, when Fort Rucker in Alabama is scheduled to become Fort Novosel, named in honor of Army Chief Warrant Officer 4 Michael J. Novosel, an aviator who flew combat missions in World War II and Vietnam and received the Medal of Honor for a Medevac mission under fire in Vietnam in which he saved 29 Soldiers.

“The Exchange is fully nested with our Nation’s military mission,” Shull said. “Your teams’ dedication is key as we forge ahead. It is truly an honor to serve those who serve.”

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