Director/CEO
Team,
During the first quarter, the Exchange seized momentum from a record-setting FY25, with Team Exchange setting priorities aligned with the Office of the Secretary of War.
Whether customer-facing or behind the scenes, these priorities are designed to increase efficiencies while further strengthening the support we are privileged to give those who serve and have served. The year is still young, and the Exchange has already made major strides toward meeting these goals.
Strengthen Military Resale: Since 2019, the Exchange has participated in a Joint Buying Alliance with the Navy Exchange Service Command, Marine Corps Exchange, Coast Guard Exchange and the Defense Commissary Agency. This purchasing alliance, involving retail merchandise and other items sold by two or more of the organizations, saved shoppers $53 million in FY25 and has saved them $308 million overall since 2019.
The Exchange continues to advance enterprise‑level collaboration across the military resale community. In late March, senior leaders from the Exchange, Navy Exchange Service Command (NEXCOM), and Marine Corps Exchange (MCX) convened at Exchange headquarters in Dallas for a strategic summit focused on strengthening joint efforts across food, services and fuel. While the initial agenda centered on food operations, discussions quickly expanded to identify additional high‑value opportunities where the three organizations can benefit from shared insights and aligned problem‑solving. Key areas of collaboration included services and vending, health and wellness, telecom, fuel, procurement, real estate and merchandising, reinforcing a unified approach to delivering improved value, operational efficiency and a stronger customer experience across the military retail ecosystem.
In 2026, the Exchange and partners will continue to expand joint negotiation efforts, focusing on high-impact categories and strategic vendor opportunities to maximize the buying power, generate stronger earnings and deliver superior value for our Nation’s military community.
Propel Modernization: The Exchange, which is leaning into artificial intelligence (AI), holds enterprise licenses with two major AI suppliers, providing access to leading AI models through secure, Exchange-approved relationships. These suppliers provide two complementary AI tools available to help associates work smarter and deliver even greater value to the military community.
One of these tools is designed to assist with everyday tasks, such as drafting emails, summarizing long message threads, recapping meetings, rewriting documents for clarity, analyzing data in spreadsheets and even creating presentation slides.
Another tool is available for associates tackling more complex challenges, like designing new systems, analyzing large amounts of information, building solutions or creating the organization’s own AI-powered tools. Access is role-based, ensuring the right people have the right tools for high-impact work, with leadership actively encouraging teams to explore how AI can drive real improvements.
These tools aren’t about replacing people, they’re about empowering every associate to focus on what matters most: serving our military families with excellence.
Advance Logistics Delivery: The Exchange took a big step toward improving logistics efficiency in late ’25 when the Dan Daniel Distribution Center and IT teams brought a goods-to-person automation center online. The system will increase efficiency with shuttles and conveyor systems bringing merchandise to associates, reducing physical strain and streamlining workflow.
The Exchange is enhancing distribution operations through goods-to-person and upgrades to the warehouse management system at the West Coast Distribution Center to increase accuracy and productivity.
The Exchange and its partners will also work together to reduce costs by improving joint transportation efficiencies.
Reach More Patrons: Until this spring, Department of War regulations restricted military exchanges from selling certain items. Through the efforts of teams from MD, SFD, Government Affairs and Exchange Policy, these restrictions have been eliminated, further expanding the product assortment.
Champion Customer Experience: In March, the Exchange officially launched the My Exchange app, making tax-free shopping and military-exclusive pricing just a tap away. By the end of the first quarter, more than 100,000 shoppers had installed the app, signaling strong early adoption.
In addition to mobile shopping, the My Exchange app features price checking and digital offers as well as order updates, notifications and promotions. Users can sign in using their existing ShopMyExchange.com credentials and immediately access the full online assortment at prices identical to those found on the website.
The Exchange is expanding its longstanding commitment to nutritional readiness, ensuring that Warfighters and families have better-for-you options by increasing partnerships with emerging restaurant brands. This will help diversify offerings and add even more healthy choices to the food portfolio.
The first Exchange location of Freddy’s Frozen Custard and Steakburgers opened in April at the Fort Lee Exchange. The Wichita, Kansas-based chain, which was founded by an Army World War II Veteran, offers such better-for-you options as lettuce-wrapped sandwiches, bread-free bowls and veggie burgers.
The Exchange further expanded its name‑brand restaurant portfolio with these new openings, strengthening food variety and customer choice across the enterprise:
- Panera Bread – opened in March at Fort Lee
- Jimmy John’s – soft‑opened in April at Fort Bragg
- Subway – opened in March at Camp Casey, Korea
- Jamba Juice – opened in April in Camp Carroll, Korea
In addition, the Exchange opened 23 quick-serve restaurants with grab-and-go options at 19 Express locations during the first quarter. The Exchange also opened 19 self-service markets in the first quarter, for a total of 740. These markets offer 24/7 convenience for service members, especially those in remote parts of their installations or working late shifts.
Increasing connectivity has also been a priority for the Exchange, which added more than 104,000 customers to internet plans in the first quarter.
During the first quarter, the Real Estate Directorate completed $18 million worth of facility projects, including:
- Vance AFB Troop Store upgrade
- JBLE-Langley AFB Express renovation
- Fuel upgrade at Eglin AFB’s West Gate Express and image upgrade at the East Gate Express
- Rotational Unit Bivouac Area Troop Store upgrade at Fort Irwin
- Burger King upgrade at Fort Knox
Team Exchange is leaning forward to further strengthen customer loyalty and increase critical Quality of Life support to our military community. As always, the Exchange will be there for service members and their families, no matter where our Nation’s military mission goes.
We are better together. It has truly been an honor to serve those who serve with you.
We Go Where You Go!
Very best,
Tom
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