Exchange Delivers $1.6B in Annual Value, Shull Tells ALA

As it approaches 130 years of service, the Army & Air Force Exchange Service remains steadfast and focused on mission support for the military community, Director/CEO Tom Shull told military resale leaders and vendor partners at the American Logistics Association’s annual convention.

The Exchange delivers $1.6 billion in financial benefit to the military community annually. Shull highlighted this video, produced by Corporate Communication’s Digital Media Network’s team, to break down the benefit:

• $450 million in tax-free savings.
• $400 million in value through the MILITARY STAR card.
• $400 million in payroll and benefits for military spouses, Veterans and dependents.
• $370 million in earnings (based on $3.7 billion over 10 years).

“So many people don’t understand what we give back,” Shull told the audience. “To me, $1.6 billion is stunning. Please make sure you let everyone you know understand what we are committed to. And that $1.6 billion wasn’t just last year. It’s every year—and there’s not a full appreciation of that.”

ALA is a nonprofit trade association that promotes, protects and enhances Quality-of-Life benefits for service members, military retirees and military families. Shull was among the military resale leaders addressing attendees Oct. 16 in Virginia Beach, Virginia, providing an update on the Exchange’s performance and commitment to serving those who serve.

Shull let the organization’s FY 2023 By the Numbers video do the talking, highlighting $8.5 billion in revenue, $512 million in earnings and $308 million in dividends to critical Quality-of-Life programs.

As the organization looks to the future, Shull said, the Exchange Credit Program’s new collaboration with Discover Global Network is expected to create even more value. New MILITARY STAR cards, which are being issued now, can be used on-installation with Discover’s existing network, making acceptance seamless and convenient for restaurants, concessionaires and MWR and Services activities.

“This is a groundbreaking partnership,” Shull said, noting that the new card includes an EMV chip for security and tap-to-pay and mobile wallet functionality for convenience. “It’s been a long time coming. The team planned and found the right partner.”

MILITARY STAR is an incredible benefit to the military resale community, Shull said. The card has the lowest APR among store cards and has no annual, late or over-limit fees. Interest is deferred for service members deployed in combat as well.

The Exchange is also focused on ushering in new brands throughout its merchandise and food portfolio, including Stanley, Wrangler, Sleep Number, Sbarro and Potbelly Sandwich Shop. Up next: Bass Pro Shops’ men’s apparel launch is slated to go live at ShopMyExchange.com in time for Veterans Day.

“Bass Pro Shops is a tremendous fit for our customers,” Shull said. The military community loves hunting, fishing and outdoor activities. The brand is really going to resonate with our customers and make a difference in terms of experience and in supporting Quality of Life.”

At the core of the Exchange’s mission, though—and what sets it apart from other retailers—is the essential support at the tip of the spear. It’s where the mission matters most, Shull said as he introduced his final video.

“The tip of spear is the most important mission,” he said. “We will take care of service members and take of their families back at home.”