Military Resale Consolidation Proposals

The Armed Forces Marketing Council opposes the any proposal to consolidate the exchange systems along with the Defense Commissary Agency if no business case exists to do so and if there is no certainty that the benefit will be enhanced by the implementation of the proposal.

Since 1968, the Department of Defense has discussed and even sought implementation of exchange consolidation. Over $17 million of studies have been conducted by DoD, the latest of which took place in 2003, and all concluded that consolidation is too costly and reaps no return on investment for years to come.

Also, the United Exchange Task Force (2004-2006) was created to implement exchange consolidation but was unable to justify the expense of doing so, but rather determined it better and more cost effective to seek opportunities of cooperation between the systems.

All efforts to date have come to the same conclusion: Exchange consolidation is too costly, reaping no benefits for years to come, and in the meantime, undercuts the benefit due to profits generated by the exchanges being spent to implement consolidation rather than to support quality of life programs for military families.

Consolidation of the Defense Commissary Agency with the a consolidated exchange system creates even more challenges and more costs, with no certainty that the benefit will not be diminished or strengthened during and/or following consolidation.

Military Compensation and Retirement Modernization Commission Proposal to Consolidate Commissaries and Exchanges into a single retail entity

On January 29, 2015, the Military Compensation and Retirement Modernization Commission (MCRMC) issued its final report which outlined changes to pay, retirement, health benefits and quality of life programs for military personnel. The report stated the Commission's view that both the access and savings at Department of Defense commissaries and exchanges should be protected. It also outlined a concept for a new military resale structure which would include consolidating the three separate exchange systems, along with the Defense Commissary Agency, into one resale activity.

While the AFMC applauds and agrees with the Commission's view that access and savings must be protected, there does not currently exist a business case nor business plan for consolidation.

AFMC Position Paper on MCRMC Consolidation Proposal