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Exchanges

An exchange is the military’s version of a department store. Soldiers call it a PX, for post exchange. Airmen say BX, for base exchange. Sailors call it a ship’s store when afloat and NEX when in port; Marines say MCX; to a Coast Guardsman, it’s CGX.

In addition to having brick-and-mortar stores, exchanges sell to authorized customers via retail stores, catalog and online at the Exchange Online Store.

Exchanges sell brand-name goods from civilian companies, as well as their own private-label items. There is no sales tax, and prices usually are lower than commercial retail prices.

There are four exchange systems:

• Some 400 stores of varying sizes at 107 Navy installations around the world are operated by the Navy Exchange Service Command, based in Virginia Beach, Va.

•The Marine Corps Exchange system operates 17 Marine Corps exchanges with a total of 170 resale facilities and reports to the Corps’ Personal and Family Readiness Division at Quantico, Va.

• Coast Guard stores are run by the Coast Guard Headquarters’ Exchange and Morale Division in Washington. In addition to land-based stores, the Navy and Coast Guard run floating ship’s stores, stocked largely with toiletries and snack foods, uniforms, CDs and CD players.

• Army and Air Force stores are run by the Army and Air Force Exchange Service, based in Dallas. AAFES is the oldest and largest of the exchange systems, with more than 12,000 facilities, including 160 main stores, in more than 35 countries.

AAFES and the Marine Corps Exchange also support military personnel deployed to the Iraq and Afghanistan war zones and elsewhere through three increasing levels of Tactical Exchange Support: AAFES Imprest Fund Activities, Tactical Field Exchanges and Direct Operation Exchanges.

At any given time, more than 450 AAFES associates are voluntarily deployed in support of these contingency operations. The stock assortment found in these exchanges varies from location to location, but even the most basic operation provides access to toiletries, phone cards and cold drinks. Since Sept. 11, 2001, nearly 2,000 AAFES associates have voluntarily left the comforts of home and family to deliver the exchange benefit to troops serving far from home.

Exchanges not only support themselves almost completely through their sales income, but all earnings generated from sales are ultimately returned to the customer. For example, about two-thirds of AAFES earnings are paid to military Morale, Welfare and Recreation programs, while the remaining third is used to build new stores or renovate existing AAFES facilities without expense to the American taxpayer.

Academic rewards

Exchanges offer rewards such as savings bonds and coupons for student achievement. See local exchanges for details.

BX Marts

Some installations have combined commissary and exchange stores called BXMarts, NEXMarts or CXMarts. Food is priced as commissary items — at cost plus a 5 percent surcharge added at the checkout. Other items carry exchange prices, with variable markups.

Eligible shoppers

Eligible shoppers include active-duty, retired, National Guard and reserve members and their families, some disabled veterans and their families, surviving spouses and former spouses. Limits or restrictions may apply. Check with local exchanges. Those eligible can shop at any exchange, regardless of service affiliation.

Employees

Exchange employees are paid from exchange revenue, not with taxpayer dollars. The exchanges also seek to hire military spouses. Some give spouses preference in hiring and have programs to help them continue their careers with the exchange when they relocate.

The 11,122 active-duty military family members working for AAFES now account for nearly a quarter of all the military command’s employees, making it one of the largest employers of military family members.

Like other Defense Department employers, AAFES gives employment preference to military spouses and family members. Once employed, AAFES’ reinstatement program helps military families when they move by allowing eligible associates to compete with current associates for in-house jobs.

Gift cards

The exchanges sell gift cards in their stores and through their online catalogs. AAFES offers a program, “Gifts from the Homefront,” under which patrons can buy gift cards for donation to deployed troops, who can then use the cards to shop at exchanges in the theater of operation.

The lightweight, flexible gift cards make it easy for troops to pick up items normally included in a traditional care package at exchange facilities throughout Operations Iraqi and Enduring Freedom.

Anyone can send a “Gift from the Homefront” by logging on to http://www.aafes.com or calling (877) 770-4438. From there, the gift certificates may be sent to an individual service member designated by the purchaser or distributed to “any service member” through the Air Force Aid Society, American Red Cross, Coalition to Salute America’s Heroes, Fisher House, Navy-Marine Corps Relief Society, Operation Homefront, Operation Interdependence, Soldier & Family Assistance Center, USA Cares or USO.

Mail order

Exchange items can be purchased through the Exchange Catalog, available to all service members. The two “big book” catalogs, released in spring and fall, are $5, but include $30 in coupons. Individual exchanges also offer specialty catalogs for uniform items, furniture and other needs.

Contact

Orders can be placed by mail, fax or phone. Toll-free orders can be placed from the U.S., Puerto Rico or Guam at (800) 527-2345. The Exchange Catalog center is open around the clock, seven days a week. Complimentary international access calling is also available from several countries. Those numbers are:

•Germany, 0800-82-16500.

•Japan/Okinawa, 00531-11-4132.

•Korea, 00308-13-0664.

•Italy, 8008-71227.

•Belgium, 0800-7-2432.

•Netherlands, 0800-022-1889.

•United Kingdom, 0800-96-8101.

•Spain, 900-971-391.

•Turkey, 00800-18-488-6312. (Calls must be made from off-base commercial lines.)

Authorized customers can also shop the Exchange Catalog online at http://www.aafes.com, http://www.usmc-mccs.org, http://www.navynex.com or http://www.cg-exchange.com.

Contact

Exchange Catalog Sales, P.O. Box 660211, Dallas, TX 75266-0211; (800) 527-2345; fax: (800) 446-0163; http://www.aafes.com; http://www.navy-nex.com; or http://www.usmc-mccs.org.

Malls

Many bases have shopping malls near their exchanges and commissaries. Services include uniform shops, barber shops, beauty parlors, dry cleaners, bookstores, florists and food courts.

MWR

After covering operating expenses, part of exchange earnings support on-base morale, welfare and recreation programs such as swimming pools and arts and crafts centers. For example, in the past 10 years, $2.4 billion has been contributed by AAFES to military MWR programs.

Other services

AAFES operates a dental clinic for family members at Fort Hood, Texas, and the Marine Corps offers the same at Camp Pendleton, Calif., to help relieve a shortage of dental staff there. Fees are comparable to those under the Tricare Dental Program.

The exchange systems also run optometry and audiology clinics at several bases. Clinics are run by private contractors overseen by local military medical officials. Navy clinics are run by private contractors, with no military medical oversight.

Online shopping

The online stores at http://www.aafes.com, http://www.usmc-mccs.org, http://www.navy-nex.com and http://www.cg-exchange.com offer more than 25,000 items via their main sites as well as thousands of items from virtual vendor partners and hundreds of thousands of items from Exchange Online Mall partners. With the exchange system’s extremely mobile customer base, the Internet extends the exchange benefit to customers worldwide.

The secure Web sites will verify your exchange privileges against the Defense Enrollment Eligibility Reporting System, or DEERS, database. Eligible shoppers can create log-in names and passwords. Items ranging from curtains to children’s clothes to uniforms are available.

Other exchange facilities include gas stations, laundries and auto service centers. Some exchanges offer services such as one-hour photo shops, movie rental stores and more. The services operate their package, or liquor, stores as exchange operations.

Contact

http://www.aafes.com, http://www.usmc-mccs.org, http://www.navy-nex.com and http://www.cg-exchange.com.

Overseas

Overseas stores offer many U.S. products that may be difficult to find otherwise. Commands often impose shopping restrictions to limit the sale of U.S. goods on the illegal market. Items bought through an exchange or commissary cannot be resold, even at cost.

Shopper restrictions are tighter overseas. Military police patrol larger exchange shopping areas for illegal marketers. There also are restrictions on gifts bought in overseas exchanges. For example, cigarettes or alcohol bought in exchanges cannot be given to foreign nationals.

Payment

Stateside and overseas exchanges accept MasterCard, Visa, American Express and Discover credit cards. Exchanges also offer their own credit plan through the joint-exchange Military STAR Card. Exchanges also cash personal checks at no charge with a valid military ID.

Prepaid phone cards

Exchanges carry phone cards with rates for specific geographic areas, including war zones. The AAFES Help Our Troops Call Home program, at http://www.aafes.com, lets anyone send Military Exchange Global Prepaid phone cards to individual service members or to “any service member” through the Air Force Aid Society, American Red Cross, Fisher House Foundation, Navy-Marine Corps Relief, United Service Organization, and Soldier & Family Assistance Center.

More information about AAFES and Help Our Troops Call Home is available at http://www.aafes.com or (800) 527-2345.

NEXCOM offers calling aboard most Navy ships and some Coast Guard cutters for 45 cents per minute back to the U.S.

Price matching

Exchanges will match lower prices on identical items sold by local competitors. For example, AAFES’ “We’ll Match It!” program works in two ways:

•Shoppers who see a price difference of less than $10 can tell the cashier, who will match it on the spot.

•Customers who report a price difference of greater than $10 need only to bring a current local competitor’s ad to receive the reduced price.

AAFES also offers a 30-day price guarantee on any item originally purchased from AAFES and subsequently sold at a lower price by AAFES or a local competitor, excluding unauthorized dealers.

Since AAFES has a dual mission to provide merchandise and services at competitive prices and generate earnings to supplement MWR programs, there are exceptions to the “We’ll Match It!” program. Except for the Exchange Catalog and aafes.com, PXs and BXs cannot accept challenges from any catalog or Web site. Other exclusions include special offers or promotions, free-with-purchase offers, limited-quantity offers, bundled promotions, special financing, “gimmick” promotions, special-order automotive parts, gasoline, automotive labor/service, double and triple coupons, clearance items, flat percentage off items and vending items.

The “We’ll Match It!” policy applies to all AAFES retail stores including main stores, Shoppettes, Class Six, Car Care and troop stores. Details are available online at http://www.aafes.com.

Sales restrictions

Congress restricts what can be sold at exchanges. Stateside exchanges cannot sell cars or fur coats, for example. The Armed Service Exchange Regulations also limit the size of diamonds and kind of furniture sold in stateside stores. Exchanges can sell finished furniture, although any one piece cannot cost more than $900.

Savings

Customer savings on exchange purchases average 17 percent to 20 percent compared to off-base retailers. That is over and above savings derived from exclusion of sales taxes. There is no surcharge on exchange purchases.

Store brands

Along with brand-name items, the exchanges carry private-label merchandise with the same quality as national brands, found exclusively in military exchanges, at significant savings. AAFES, for example, offers military service members and their families value-priced products through its Exchange Select line. With 489 different items in categories such as health and beauty care, household cleaning, laundry and single-use cameras, Exchange Select products provide a low-cost alternative to national brands and are made by reputable manufacturers.

Troops and their families can save an average of 50 percent over national brand equivalents. Representatives from AAFES Quality Assurance team actively ensure the quality of Exchange Select merchandise by visiting suppliers’ plants to verify that “Good Manufacturing Practice” guidelines, as set by the Food and Drug Administration and other governing agencies, are used. All over-the-counter medicines, such as ibuprofen and acetaminophen, meet FDA established guidelines, which are the same for Exchange Select and national brand-equivalent products.