Commissary, Exchange Merger Plans Advance

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Aggie1
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7:23p, 6/4/18
AG
https://www.military.com/military-report/commissary-exchange-merger-plans-advance.html?ESRC=mr_180604.nl

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Deputy Defense Secretary Patrick M. Shanahan has directed that a task force be formed by July 1 to develop a business case for consolidating the military's three separate exchange services, and the Defense Commissary Agency, into a single resale enterprise to oversee and streamline all on-base store operations. Read the full story in the latest Military Update on Military.com.
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clarythedrill
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1:08p, 6/5/18
A merger of the two would be unfortunate, and would raise the prices of items at the commissary.

I remember when the PX got their hand into Clothing Sales. The prices almost doubled overnight for boots and uniforms. I would expect the same from the commissary if this happens.

I think I remember Wal-Mart offered to give military members a steep discount on all food items at all Wal-Marts if the commissaries closed down. That would probably be a good idea, and just close all the commissaries down. Of course that would mean a General and CSM would lose their job. THE HORROR!!!!!!!!!!!!

Edit: I must say that I really like the BX on the navy base I am stationed on better than the PX on just about any Army post.
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JR69
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In reply to clarythedrill • 2:02p, 6/5/18
AG
NAVEX and MCX >>>>> AAFES. It's been that way as long as I have been eligible to shop at any of them - almost 50 year. Better selection, better prices. It's been a long time since i had to buy uniforms, but I do notice how expensive uniform items, insignia, etc are these days. But I also remember a difference in quality between uniforms purchased in Clothing Sales stores and the Exchanges.

I hate to see the commissary folded in to any exchange operation. I shop at a Marine Corps Commissary and the local Super WalMart isn't even close to being competitive. I'd rather drive across town to Publix than shop at WalMart.
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74OA
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3:17p, 6/5/18
AG
Unlike the commissary which receives appropriated funds, the exchanges are 98% self-supporting from sales and the profit is plowed into MWR facilities on base. Once they merge, there's no telling what will happen to MWR funding.

What's really happening is that townships and stores across the country have long resented the grocery, department store and gasoline sales/taxes lost to base facilities and have waged a steady campaign in Congress to either kill them outright or make them uncompetitive. This is step one.
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JR69
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In reply to 74OA • 3:31p, 6/5/18
AG
It's been a long time since I've seen any exchange be competitive for anything.
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74OA
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In reply to JR69 • 4:03p, 6/5/18
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...and yet they're largely self-supporting and paid around $250M to base MWR last year.
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CT'97
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In reply to 74OA • 4:34p, 6/5/18
AG
74OA said:
...and yet they're largely self-supporting and paid around $250M to base MWR last year.
My guess would be convenience. I grew up shopping the exchange and commissary because we couldn't afford not to. Now that is not the case but it's a lot easier to just stop by on the way home and pick up items. Of course all your training bases have a built in trapped population of shoppers who really don't have an option to go elsewhere.
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clarythedrill
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In reply to JR69 • 4:38p, 6/5/18
JR69 said:
It's been a long time since I've seen any exchange be competitive for anything.
If you were to take two identical shopping lists and go to the commissary and then to any other grocery store/Wal-mart, you would save money shopping at the commissary, AND, the commissary is all name brand items and not store brand items.

That being said, if you want a larger selection of produce and meats, then a super Wal-mart/HEB etc. is the way to go.
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JR69
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In reply to clarythedrill • 6:06p, 6/5/18
AG
Commissary yes, any exchange - no way.

I have done that exercise more than once and it's generally about a 30-35% saving commissary over anywhere else.
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JR69
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In reply to 74OA • 6:07p, 6/5/18
AG
CT'97 got it
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bigtruckguy3500
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7:06p, 6/5/18
Well, the exchange now price matches online and other retailers. So you can price match and then not pay tax/shipping. So in that regard it can be a better deal. And when they have sales, it's a good deal. There are some things where the manufacturer doesn't want different places advertising different prices, and in those cases the exchange is better since you don't pay tax.

But if you're ok with buying generic stuff, you can get stuff way cheaper elsewhere. I probably save $50/month buying at places like Aldi. But I will buy certain things at the commissary that I know are cheaper and/or there is no generic version available when I'm already there getting a haircut.

I think a big advantage both of these places has, that keeps them competitive, is that they don't pay for they land they operate on. At least I don't think so.

It would be interesting to see what it would look like to have Walmart give steep discounts to military in exchange for the commissary closing. But that would further drive business away from places like HEB/Food Lion/Kroger/etc.
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redcrayon
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8:10p, 6/6/18
AG
I buy department store cosmetics and skincare at the exchange because the prices beat everyone else and there is no sales tax. We've also bought electronics there but not before shopping around.
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Seven Costanza
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4:59p, 6/7/18
AG
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bufrilla
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4:08a, 6/8/18
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you may not pay taxes on purchases, but you do pay a surcharge which is almost the same percent as the local taxes.
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74OA
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10:53a, 6/15/18
AG
The exchanges generated enough revenue to pay for themselves and kick in $2.4B over the last ten years to support MWR activities. So obviously a lot of people still see exchanges as enough of a good deal to shop there.

Return on Investment
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Aggie1
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5:50a, 6/18/18
AG
While I agree that the advent of SuperShoppingBoxStores like WalMart, Sam's,and other similar superstores and retail alternatives, etc., provide easy access local competitive pricing in towns and cities across the USA, I'm surprised no one has mentioned the distinct support and absolute necessity of BX/PX/NEX, etc., and Commissaries in remote locations - not only stateside, but especially overseas. Not only do they provide familiar food products and necessities we all use daily, but they provide a place to meet and greet each other in an informal setting and provide contract kiosks of familiar fast food stores, vendors, etc. And who could possibly overlook the advantages of Class VI??.

Without the BX/PX/NEX, commissaries, etc., during many overseas tours and TDY's I think I - and my family oftentimes - would have gone bonkers. Sure, we sampled the local stores and whatnot - usually at a cost premium - but familiarity goes a long way towards comfort and peace of mind.

FWIW, the APO-FPO system was also a blessing!! Catalog and on-line purchases sent and received via the Post really, REALLY made life overseas so much easier to deal with.

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Aggie1
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8:18a, 6/24/18
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with the recent court ruling on internet tax collection, the Exchange looks to get even better...

http://money.cnn.com/2018/06/21/technology/wayfair-vs-south-dakota/index.html

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74OA
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In reply to bufrilla • 2:09p, 6/26/18
AG
bufrilla said:
you may not pay taxes on purchases, but you do pay a surcharge which is almost the same percent as the local taxes.
You're thinking of the commissary, which sells at cost plus a 5% surcharge.
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