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Department of Defense

INCREASE PFOFIT MARGIN AT EXCHANGES

Open up shopping opportunities to federal civilian employees possessing a valid Government ID Card.

 

Currently, military commissaries and exchanges authorize the sale of most products and services only Active Duty Military possessing a valid ID card and authorized dependents. However, potential revenue from civilian employees is being overlooked. There is a lot of opportunity to increase revenue, move more inventory, and create jobs, thus helping to reduce the national unemployment rate.

 

Allowing civilian employees with a valid Government Common Access Cards (CAC) to purchase goods and services offered at commissaries will reduce the shrink, waste caused by food that sits unpurchased on shelves or in coolers and expires. The national shrink average in 2010 was approximately 1.5% of inventory, while the commissaries average was an impressive .73%. More consumables purchased before they expire may help to reduce that to between .68% to .70%, saving tens or even hundreds of thousands of dollars in waste per year.

 

Allowing civilian employees to purchase goods and services such as clothing, electronics or specialized services at such places as the Navy or Marine Corps exchanges will improve demand for merchandise, and increase the need for suppliers to hire more laborers to meet that demand. This would also help to reduce the national unemployment rate. Over the past 2 years the Navy Exchange Command (NEXCOM) has reported an average net income of approximately $73 million, mostly from Active Duty military sources. After deducting payroll and other expenses, the total profit was approximately $26.25 million (36% of net income). Opening exchange services to eligible government civilian employees would potentially increase net income to $100 million or more; increasing total profit by nearly $10 million.

 

In summary, this proposal would increase consumer spending, may decrease unemployment, and increase tax revenue coming back to the government each year.

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Idea No. 756