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Serious Issues for Serious Times
A long list of issues converges on ALA's Dallas convention, October 17-19 in Irving, Texas.
Federal budgetary, marketplace and political issues are driving a re-shaping of the military resale business.
These dynamics are spinning off multiple issues that directly affect the business of military resale.
Over the past year, ALA's impact workshops, exchange meetings and commissary meetings have provided tremendous insights into the myriad changes taking place. Dallas brings it all together with representatives from all commodity business sectors and all players involved in the supply chain for resale programs.
All of the resale agencies will be represented: Coast Guard, Marine Corps, VCS, AAFES, DeCA, and NEXCOM.
In Dallas, you'll hear about:
Business and Patron Issues at the Convention
Exchanges Issues at the Convention
- Emerging requirements and opportunities for business in the future military resale programs.
- The changing military market demographic and its effect on business.
- Methods being employed to meet the needs of this changing demographic.
- Military strategic initiatives, such as force structure changes and their effect on the resale system.
- Patron concern about their resale benefits.
- Changes to alcohol policies within the military and their effect on consumption.
- New Congressional authority to combine nonappropriated and appropriated funds and implications on resale businesses.
- Presidential transition and the effect on changes to leadership in Federal agencies.
- On-going reviews by the General Accounting Office of the resale system, key findings to date and implications for the business of resale.
Commissary Issues at the Convention
- Efforts to improve and expand e-commerce.
- Supply chain changes to fulfill e-commerce.
- Exchange and VCS cooperation to open up the Veterans community to the resale system.
- Impact of the Service Contract Act on exchange subcontractors.
- Impact of labor board rulings for on base franchises.
- Changes to sourcing of athletic shoes and impact on exchanges.
- On-going ability of exchanges to fund community support programs.
- Impact of changes to tobacco policies and effects on exchanges and dividends.
- Changes to policies and procedures for stocking shelves in commissaries.
- Efforts by the exchanges to partner with industry to enhance both brick-and-mortar and e-commerce programs.
- Prognosis of introducing the exchange credit card into commissaries.
- Changes to overseas sourcing policies for exchange products.
- Status of the continuation of appropriations for exchanges.
- Revenue enhancement and expense reduction targets that are being imposed on exchanges and implications for future business.
- Effect of labor rule changes on exchanges.
- Efforts by exchanges to introduce new products and services to exchange patrons.
DoD Trans-Resale Issues at the Convention
- Transition from the current cost-plus 5% pricing approach for commissaries to variable pricing.
- Who is the Boston Consulting Group and what is their relationship to the military's resale programs?
- DeCA's category optimization process and defining new assortments and identifying brands considered as likely candidates for Cost of goods negotiations.
- Commissary transformation and implications for supply chain support.
- Introduction of private label into commissaries.
- Changes to the pricing formulas for commissaries and plans for rolling out category and store based variable pricing.
- Commissary efforts to overhaul the process for measuring patron savings and implications for commissary transformation.
- BCG recommendations to reduce number of national brands, build deeper relationship with manufacturers, introduce private label and sell at a margin greater than 5%, and simplifying shelf space, improving merchandising and reducing cost of goods, and local sourcing.
- Processes for engagement with industry by DeCA to reduce supply chain costs and transition cost recovery programs from theory into practice.
- Future of the DeCA workforce to include changing status of employees to nonappropriated fund.
- DeCA plans for outreach to industry and patron groups regarding their transformation initiatives.
- Plans to expand commissary operating hours.
- Changes to the advertising policies.
Elections/Political Developments Affecting Resale at the Convention
- Opening resale programs to DoD civilians and their families?
- DoD's findings on willingness of local retailers to offer discounts to military at off-base establishments.
- Defense findings on the proposal to close commissary stores in close proximity to each other.
- Status of the plastic bag ban on military bases.
- Effect of tightening access to bases and effect on business.
- The future of commissary and exchange collaboration.
- The future of military basing including Defense plans for base closures.
- DoD's efforts to re-shape existing military bases and enter into negotiations on more public/private arrangements.
- Changes to oversight in the Pentagon to include the establishment and operation of the Defense Resale Business Optimization Board.
- Commissary and exchange construction programs.
- The DoD's Budget Neutrality report and implications on funding and operations going forward.
- Processes for using DeCA revenue accruing from transformation to offset DeCA operating expenses.
- The glide path for funding and its impact on the pace of commissary transformation.
- Status of Congressional direction on establishing common back-end business process for exchange and commissaries.
- What does the next Administration hold for the future of the military resale system?
- The political impetus for privatizing commissaries.
- Implications on business from converting DeCA to a nonappropriated fund instrumentality
- Impact of the Affordable Care Act on exchange labor costs and earnings.
- What's behind and ahead for the Senate Armed Services Committee's emphasis on privatization?
- How will the Congressional and Senate elections shape the resale system?
- What happens to resale if the Democrats take back control of the U.S. Senate?
- DoD and congressional plans for funding commissaries and exchanges.
- Attitude of the appropriations committees in the new Congress toward the resale system.
- Status of the on-going conference between the House and Senate on major authorities being provided to commissaries and exchanges.
- Efforts by the Association to educate policy-makers on impact of changes to the resale system.
- Beneficiary group concerns and efforts to present these concerns to Congress.
- Implications of the new authority provided by Congress for inter-resale support agreements and implications on the acquisition process resulting from this initiative.
- Congressional efforts to guarantee savings to patrons and continue to underwrite commissary and exchange benefits.
- The future of Congressional oversight of the resale programs.
- Legislative triggers that occur when certain milestones are met in DeCA.
Patrick B. Nixon
President, American Logistics Association
Facing the prospect of another stopgap budget measure to fund the Pentagon, Defense Secretary Ash Carter says he will beg Congress to compromise in the interest of national security when he testifies before the Senate Armed Services Committee. He also said it's time for Congress to get off his back.
The Washington Post
Senate leaders said they are close to deal on a stop-gap spending bill that would prevent a government shutdown at the end of the month and provide funding to combat the Zika virus, but disagreements over last-minute details continued to hold up an agreement.
Military Times (tiered subscription model)
Two senior enlisted advisers made a passionate pitch for the idea of expanding exchange online shopping privileges to all honorably discharged veterans — which would be a way to bring in more money for shrinking morale, welfare and recreation programs.
The Senate Armed Services Committee's top Democrat is pessimistic the 2016 National Defense Authorization Act will be finalized before the end of September, and money remains the toughest issue in negotiations, he told reporters.
Top U.S. military officials told lawmakers their services have been squeezed by budget instability and spending caps — and that under sequestration cuts, they would not have the resources to defend the country.
Military Times (tiered subscription model)
First lady Michelle Obama and former first lady Laura Bush urged the next occupants of the White House to be vocal advocates for veterans and service members, because the challenges and sacrifices of those military families isn't over.
Specific information on upcoming ALA events is posted regularly on the ALA website. To learn more about each event, please click the following links:
||2016 Hampton Roads Golf Tournament & Oyster Roast
|HRALA Chuck Johnson Memorial Golf Tournament & Oyster Roast at Eagle Haven Golf Course, JEB Little Creek-Fort Story. Event limited to 128 participants, so please register early! |
||69th Annual Convention
|Registration is now open for ALA's 69th Annual Convention, Oct. 17-19, 2016 at the OMNI Mandalay in Irving, TX. Register today!|
||2016 NY Chapter Holiday Luncheon
|This year's event features a return to New York's scenic Water Club with proceeds supporting the Military Commanders' Scholarship Fund. Please plan to join us! |
CNN anchor and chief Washington correspondent Jake Tapper will sit down with the president to discuss veterans, national security and foreign policy issues impacting the U.S. military on Sept. 28 at 9 p.m. at Fort Lee, Virginia. Obama will field questions from the audience made up of active duty service members, veterans and the military community.
Stars and Stripes (tiered subscription model)
Congress' struggle to pass a defense budget could have a major impact on the next president's defense plans, as the budget debate might stretch into the new leader's first term.
Speaking before the Senate Armed Services Committee, the leaders of the Army, Navy, Air Force and Marine Corps warned that a return of sequestration budget caps would promote fiscal uncertainty and take a deep toll on rank-and-file morale.
U.S. Air Force
During a panel session at the Air Force Associations' Air, Space and Cyber Conference Sept. 19, Air Force Secretary Deborah Lee James, Air Force Chief of Staff Dave Goldfein, Chief Master Sgt. Of the Air Force James A. Cody and their spouses focused on how the Air Force is supporting its members and ways Airmen can strike a balance between work and home.
U.S. Department of Defense
"As the memory of 'Don't Ask, Don't Tell' fades further into the past, and we move forward together to face new challenges," said Defense Secretary Ash Carter, "we recognize that openness to diversity and reaching out in a spirit of renewed inclusiveness will strengthen our military and enhance our nation's security."
Commissary Web Posts
The following commissary items were posted to the ALA Website between 10 AM September 15, 2016 and 10 AM, September 22, 2016:
- 2017 DP #1, Publishing Shippers/Pallets/One-Time-Buys.
- 2017 Valentines WW Promotion Package.
- DP #23, Push Promotion Quantities.
- DP #24, Far East Promotion and Shipper/Pallet/One-Time-Buy Quantities.
- 2016 Fall Club Pack, CONUS, Alaska & Hawaii November Quantities.
NOTICES TO TRADE (NTT)
- 16-117, Revision to 2017 Display Periods Promotion Calendar w/1 Attachment - Promotion Calendar.
- Adds/Changes/Deletes, Week 16-38.
- FY 16/17 Guard/Reserve CONUS On-Site Sale Schedule, September 16, 2016.
- DeCA August 2016 Sales Data.
Natural Products Insider
Walmart has agreed to remove a statement on its store-brand Spring Valley dietary supplement labels nationwide, the office of Iowa Attorney General Tom Miller announced Wednesday, citing concerns that the "statement could give consumers a mistaken impression as to what product features an independent lab actually verified."
Publix, Chick-fil-A and Residence Inn are the only companies among close to 300 to earn "excellent" scores for delivering positive emotional experiences, according to a Temkin Group study of 10,000 U.S. consumers that gauged positive and negative emotions.
These companies were followed by H-E-B, True Value, Kroger, Save-a-Lot, Wawa Food Market, QVC and Amazon.
The chief executive of the country's leading organization on frozen food products hopes a new report will spur consumers and retailers alike to strongly consider investing in frozen food to in order to reduce waste. Speaking to the Retail Gazette at the recent launch of the "Frozen Food Report II," the first such report in six years, British Frozen Food Federation boss Brian Young said more consumers were already concerned about how to save food from waste.
Registered dietitian Joy Dubost says family meals can encourage healthy eating habits, prevent obesity, help kids perform better in school and even fight the risks of substance abuse.
Food Business News
More than 12,000 certified organic farms in the United States generated $6.2 billion in sales in 2015, an increase of 13 percent from $5.5 billion reported in 2014, the National Agricultural Statistics Service of the Agriculture Department reported in its 2015 Certified Organic Survey.
Ten states accounted for 78 percent of all certified organic food sales.
By Bambi Majumdar
Nonprofit organizations are driven to provide meaningful support to those they serve. Savvy nonprofits embrace social media to highlight stories, punctuated with engaging images along with video and audio clips to evoke emotional responses from supporters. How do you unlock the mystery of social media to reach your audience, drive actions and increase donations? Careful, thoughtful research and planning are essential to help you stand out.
Food Poisoning Bulletin
The U.S. Food and Drug Administration has announced that $21.8 million in federal money will go to 42 states for use in implementing FDA's new regulation, "Standards for the Growing, Harvesting, Packing, and Holding of Produce for Human Consumption" (commonly called the Produce Safety Rule).
The Navy Exchange store on Naval Submarine Base New London opened its new doors downstairs in Building 484, completing "phase one" of its new renovations, Aug. 15.
"Moving downstairs will benefit our customers because they won't have to worry about the escalator or elevator, and for now everything will be on one floor," said Mark Good, general manager of the NEX. "Phase two is now underway and it will involve the complete renovation of the upstairs, food court, escalator and passenger elevator."
A homecoming sign-making event took place Aug. 21 at the Pearl Harbor Navy Exchange. There were 22 families in attendance and NEX provided all the materials (such as poster boards, markers, stencils, stickers, crayons and pencils) for the event. Spouses were provided goodie bags from local sponsors and everyone was provided refreshments.
You are invited to partner with us in this season of giving back to our Navy families. In return, the Navy Exchange Service Command (NEXCOM) will acknowledge each NEX Business Partner who participates in the celebration in the ways detailed in the attached informational brochure. More importantly, we believe that with your support, we will be making a difference in the lives of those who serve!
We value our partnership with you and are excited about this opportunity to make this Navy Blue Holiday the best and most meaningful in our history!
SVP / Chief Merchandising & Marketing Officer
3280 Virginia Beach Blvd.,
Virginia Beach, VA 23452
Office: 757-631-3800 Email: Rich.Honiball@nexweb.org
With Vendor support, #NEXCares invites children ages 12 and younger to craft and decorate personalized care packages — filling boxes with instant photos, notes, crafts, drawings and a selection of their deployed loved ones' favorite reminders of home — all at no cost to the family. As shown by the outpour of positive customer stories, #NEXCares presents a meaningful opportunity for a brand, such as yours, to create lifelong memories with our military families.
With contributions from vendors like you, the NEX will be able to expand #NEXCares to more stores, allowing more children to create and ship more packages to their forward deployed parents around the world.
P.S. If you believe, please contact us at 757-631-3672 or firstname.lastname@example.org as soon as possible to create the best event or promotion possible.
Sign up at myNavyExchange.com/SupportWeBelieve.
When Macy's CEO Terry Lundgren appeared on CNBC recently to discuss his company's plans to shutter 100 stores, he noted that the U.S. has a "ridiculous" amount of retail space, equaling about 7.3 square feet per capita. That's well in excess of the 1.7 square feet per capita in Japan and France, and the U.K.'s 1.3 square feet.
Sales at U.S. retailers dropped more than forecast in August, indicating a pause in recent consumer-spending strength that has carried the economy.
Another wave of Kmart store closures is underway. On Sept. 16, Sears Holdings, which owns Sears and Kmart, informed Kmart employees in at least 13 states that their stores would be closing in mid-December, according to local news reports and employees who spoke to Business Insider.
Search Marketing Daily
Why do consumers browse on multiple retail sites when shopping for a specific item? Excluding the fact that they look for a better price, 34 percent browse multiple sites looking for a better selection, 23 percent say the product is unavailable, 20 percent want to compare shipping options, and 20 percent want more product information, according to a recent study.
Mobile Commerce Daily
Retailers should stop thinking of mobile as a disruptor but instead embrace it to help usher in sales by making the shopper’s journey more efficient, as 34 percent of consumers leverage devices in-store for product information, according to new insights from Alliance Data.
The Wall Street Journal (tiered subscription model)
J.C. Penney Co. narrowed its quarterly loss and broke with department store rivals in reporting a sales increase Friday, signs that its turnaround is gaining traction.
Dollar General plans to hire 10,000 new workers within the next month to support the company's expansion plans.
The Goodlettsville, Tennessee-based discount retailer announced it will host hiring events at 600 locations through Sept. 24 where interested applicants can meet with Dollar General managers.
Convenience Store Decisions
Part of managing C-store real estate is finding opportunities to obtain sites for new stores. Sometimes, however, the job requires weeding out underperforming sites.
Recently, the Department of Agriculture put out a call to action, asking companies to apply for an upcoming pilot program that would enable people to use food stamps for online grocery purchases. Approximately 45 million people used the Supplemental Nutritional Assistant Program in 2015. And yet there's currently no way to cash in on those benefits online. This pilot program is the first step.
Convenience Store Decisions
Flint, Michigan, has been the epicenter of contaminated tap water. For more than 24 months, residents have battled authorities over how to clean up the lead-tainted water running through the city's aging pipes. The story gained more attention when the three biggest bottled water producers, Coca-Cola, PepsiCo and Nestle, promised to supply the city's schools with free bottled water through the end of this year.
Two Mobil-branded convenience stores/gas stations in Orlando and Lakeland, Florida, have rolled out pizza vending machines from Pizza Touch, an Italy-based company that offers pizza baked hot in two minutes.
Convenience Store News
Convenience stores provide a fast shopping experience for on-the-go customers, who can easily find what they're looking for, discover a new product or two along the way, and quickly checkout to get back to the rest of their day. A C-store retailer's own buying experience, however, is often quite different.
Convenience Store Decisions
Today, collecting data is clearly essential for convenience store retailers. But capturing and making use of the most pertinent information—from customer analytics to competitive intelligence — can spell the difference between operating in the black or not.
Demand for natural beverages is growing across North America, according to a new report from Technomic. As consumers become more conscious about the foods they put into their bodies, the same logic is being applied to beverages. In fact, 38 percent of consumers want restaurants to offer healthier beverage options, and 60 percent are more likely to purchase all-natural beverages.
Convenience Store News
Consumers can expect to see more familiar 7-Eleven signs now that the retail chain's parent company has revealed big plans for the United States. Seven-Eleven Japan Co. expects to more than double its store count in the United States, increasing its current portfolio of 8,500 to 20,000 stores, President Kazuki Furuya said, according to the Japan Times.
Federal News Radio
In less than two weeks, the Office of Personnel Management is expected to launch the new background investigation service to help fix the mess created by a series of incidents ranging from a lack of contractor oversight to the massive data breach affecting 21.5 million current and former federal employees.
Military Times (tiered subscription model)
Soldiers and families around the world will soon see the results of budget cuts in morale, welfare and recreation programs, including closures of some facilities, reduced operating hours and increased fees.
Molly's BBQ & Seafood, a popular eatery in Wahiawa, Hawaii, now has a location at the Barbers Point Golf Course. According to owner Margaret "Molly" Walker, customers can look forward to many of the same signature dishes served at her original location.
7701 Las Colinas Ridge, Ste. 800, Irving, TX 75063