ALA Executive Briefing
Jun. 6, 2014

More US base consolidations on the way in Europe
Stars and Stripes
Recommendations for more base closures and consolidations in Europe will be submitted to Defense Secretary Chuck Hagel in a matter of weeks as part of an ongoing effort to shed unneeded facilities on the Continent, according to the Defense Department.More

US experts bank on $50 billion to $70 billion overseas contingency ops budget
Defense News
Even though President Barack Obama announced this past week that the Defense Department would leave only 9,800 American troops in Afghanistan in 2015, experts expect the Pentagon to ask Congress to approve $50 billion to $70 billion for war-related efforts.More

Pest control service
Federal Business Opportunities
Pest control service at Fort Huachuca Commissary, Arizona. The Period of Performance will be for a base period starting as early as July 1, 2014 through June 30, 2015 and will include four one-year option periods that may extend performance through June 30, 2019. This Request for Quote (RFQ) will be issued on/or about May 27, 2014 with a tentative closing date of June 11, 2014. This acquisition is being issued as 100 percent Small Business set-aside.More

Defense Commissary Agency (DeCA) Time and Attendance System (TAS)
Federal Business Opportunities
The Defense Information Technology Contracting Organization at Scott AFB intends to issue a solicitation for a time and attendance System for the Defense Commissary Agency on or about June 6th, 2014. The solicitation will not be set-aside for small business concerns. In the following, is the draft solicitation. Please send any questions or comments to the POC indicated in this announcement. More

Gazebos, octagon
Federal Business Opportunities
This Request for Quotation (RFQ) is being issued as a 100 percent small business set-aside for the acquisition of five gazebos, octagon to be delivered (FOB Destination) to the following Defense Commissary Agency stores located at Ft. Irwin, CA; West Point, NY; Meridian NAS, MS; Key West NAS, FL; and Little Rock AFB, AR. A purchase order is contemplated.More

Designing spaces
Grocery Headquarters
Looks count. In today's world where consumers want it all — an attractive store, clean environment and wide assortments — retailers have increasingly come to accept that if their stores are not up to snuff consumers will simply go elsewhere to shop. More

Building workplace safety with rewards and recognition
Occupational Health & Safety
Recognition and reward for a job well done fulfills a basic human need for acknowledgement and affirmation. When we are recognized for our contributions, we naturally engage at a higher level and contribute more. Successful safety managers incorporate the concept of recognition and reward into their safety programs to drive positive safety behavior and ultimately impact financial results. More

Senate, House panels reject many Pentagon budget proposals
Military Times
The Senate Armed Services Committee wasn't fond of the Pentagon fiscal 2015 budget proposal, but its members liked it more than their House colleagues did. In their draft of the annual defense authorization bill, Senate committee members rejected Defense Department plans to retire the Air Force's A-10 fleet, drop the aircraft carrier fleet below 11, overhaul the Tricare system and reduce the commissary benefit. More

4-5-4 calendar: An explanation of the 53-week year
National Retail Federation
Dividing the retail calendar into 52 weeks of seven days each, or 364 days, leaves an extra day each year to be accounted for. As a result, every five to six years a week is added to the fiscal calendar. This anomaly has most recently occurred in FY'00, FY'06 and FY'12, and will occur in FY'17.More

ALA NY West Point Golf Outing

The ALA NY Chapter is having its annual West Point Golf Outing on Monday, June 23. Proceeds from the event benefit the Military Commanders' Scholarship Fund.

We do not currently have an online registration process - any inquiries can be directed to me at this email address: jmugnai@familymedia.com.

Thanks,

Joe Mugnai
FamilyMedia
516-746-2000
jmugnai@familymedia.comMore

On-base fast food outlets get wage reprieve
Military Times
Military fast food fans will benefit from the easing of new Labor Department wage rules that threatened to cause the closure of many such eateries on installations. "We are optimistic that many of our industry partners will be willing to continue providing services under these new terms," said Kathleen Martin, spokeswoman for the Navy Exchange Service Command, which negotiates and oversees contracts for fast food concessionaires on Navy installations.More

Adult magazines, periodicals axed from military stores amid falling sales
NY Daily News
Playboy, Penthouse and other adult-themed magazines will no longer be sold at U.S. Army and Air Force Exchange Service stores — a move described by the stores' operators as a business decision based on falling sales and not a result of recent pressure from anti-pornography activists. The 48 "adult sophisticate" magazines being dropped are among 891 periodicals that will no longer be offered by the exchange service at its stores on U.S. military bases worldwide. Other titles getting the ax include English Garden, SpongeBob Comics, the New York Review of Books and the Saturday Evening Post.More

Army & Air Force Exchange Service recognized as a Best for Vets employer
Public Affairs
The Army & Air Force Exchange Service announced that it has been selected a Best for Vets employer for 2014 by Military Times. The military publication recognized the Exchange for its commitment to providing job opportunities to veterans, naming it No. 31 among the top 59 employers for veterans. This marks the first time the Exchange has received this recognition.More

NEXCOM WCDC-Chino change

The Navy Exchange West Coast Distribution Center, Chino, California (WCDC Chino) has begun van stuffing support for direct, less-than-container-load (LCL) shipments to Guam. Effective July 31, 2014, the AAFES French Camp facility in Stockton, CA will refuse NEX shipments arriving at their facility. After July 31, 2014, all re-consignment & storage charges associated with the refusal of NEX shipments at AAFES French Camp will be charged back to noncompliant vendors. The current ship to/plan to address for direct, LCL shipments to NEX Guam is:

Navy Exchange West Coast DC
4250 Eucalyptus Ave.
Chino, CA 91710

Note - The most effective method of ensuring you have the current ship to/plan to addresses for Navy Exchange locations is to create respective order releases in NEX TMS. In order to get set up in NEX TMS, please send your request to the NEX Traffic Management Group at NEX_Traffic_Management_Group@nexweb.org.More

AAFES MD-C moves and retirements

Kye Corn moves to Sr. Buyer HBC; assumes position vacated by Jacquie Estrada, retired

Vickie Venables moves to beer/wine; assumes position vacated by Kye Corn

Adrienne Townes moved to NA beverages; assumes position vacated by Vicki Venables

Linda Jerome moved to ODL, promotion; assumes position vacated by Mark Moody, retired

Nanette Bernard moved to HBC; assumes position vacated by Linda Jerome

Ray Banaban moved to MCS

Mark Martin moved to beer/win; assumes position vacated by Ray Banaban

Joseph Kasales moved to spirits; assumes position vacated by Mark Martin

Reggie Dawson
VP, Consumables
Merchandising Directorate
Army & Air Force Exchange Service
214-312-3212 office
dawsonre@aafes.comMore

Dollar General CEO: Keeping it simple is key to success
Chain Store Age
Keep it simple — that's secret to Dollar General's success Rick Dreiling, chairman and CEO of the 75-year-old company said at its shareholders annual meeting. "Simple neighborhood stores, simple, frequently-needed items and everyday low prices," said Dreiling. "For 75 years, [Dollar General has focused] on helping low- and middle-income families save money and save time by offering quality, basic merchandise at affordable prices in convenient, small-box neighborhood stores." More

Exclusive: Amazon Prime to offer music streaming service ...
with 6-month-old songs

BuzzFeed
Amazon, the Internet's largest retailer, is making an aggressive move into the booming and intensely competitive business of streaming music. The company will expand its Prime membership offerings by adding a stockpile of old and newish music for subscribers to stream on demand. The Prime music service, which is scheduled to launch this June or July, will not include recent releases but instead restrict its catalog to songs and albums that are 6 months old and older.More

Costco reluctantly searches the Web for younger shoppers
Bloomberg Businessweek
Costco, ever keen to swell its membership ranks, is grudgingly turning to the Internet in search of more millennials. The big-box shopping club is adding more categories of products to its Web store and has a trial partnership with Google to offer same-day deliveries of Costco wares in New York, Los Angeles, and San Francisco. Costco said it has also started selling memberships via discount and flash-sales sites, such as Living Social and Zulilly.More

Trader Joe's, Publix, Aldi America's best grocery brands
MediaPost
The latest ranking of America's best-loved supermarkets is just in, and once again, Trader Joe's lands at the top of the heap, followed by Publix, Aldi, Costco, and Hy-Vee. The survey, from Market Force, a Colorado-based market research company, bases its results on responses from some 6,200 adults around the country, who rate their satisfaction with stores by service, assortment and price, as well as the likelihood that they'd recommend it to a friend. It then factors in geographic distribution, to make a level comparison for regional brands.More

Census Bureau: Online shopping, mail-order businesses jump 27 percent
Chain Store Age
Online shopping is showing rapid growth compared to the rest of the retail trade sector, with the number of establishments growing 27.4 percent between 2011 and 2012, according to new U.S. Census Bureau statistics released today. Drawn from County Business Patterns: 2012, the new data provides the only detailed annual information on the number of establishments, employees and payroll for nearly 1,200 industries at the national, state and county levels.More

Macy's to anchor new mall in Hawaii
Chain Store Age
Macy's announced an agreement for Macy's to anchor the new Ka Makana Ali'i in Kapolei in West O'ahu, Hawaii. Current plans call for the 103,000-square-foot, one-level store to open in mid-2016. Ka Makana Ali'i, a major mixed-use project with more than 100 retail, hotel, dining, entertainment and office components, is a project of DeBartolo Development in partnership with the Department of Hawaiian Home Lands.More

Target signals bigger mobile innovation push with Digital Advisory Council
Mobile Commerce Daily
Target has created a new Digital Advisory Council consisting of executives from leading companies as it ramps up efforts to create disruptive mobile experiences that bring value to customers. While Target has been active in the mobile space for several years, the council could help insure that top-level executives better grasp the need to invest in mobile and other digital strategies. With such support, Target should be better positioned to more effectively leverage mobile as a differentiator. More

Apple buys Beats for $3 billion, tapping tastemakers to regain music mojo
The Wall Street Journal
Apple Inc. wants to regain the beat in its music business, which is under assault from a stream of upstarts. The tech giant recently said it is buying Beats Electronics LLC for $3 billion to bolster a music business that has lost some of its mojo, as streaming-music services encroached on the downloads dominated by Apple's iTunes service. In Beats, Apple is getting a music-streaming service, high-end headphones and music-industry connections. Beats' co-founders, rap star Dr. Dre and music mogul Jimmy Iovine, will join Apple.More

Michael Kors' aggressive expansion comes at a cost
Fortune Magazine
Michael Kors' North American comparable sales soared last quarter and its profit blew past Wall Street expectations with numbers that would be the envy of any retailer. But behind those figures were signs the aspirational luxury fashion house's growth is coming at the expense of its profit rate. In its relentless drive to squeeze its more established rival Coach, Kors has aggressively expanded, opening 101 of its own stores in the past year and bringing its total fleet to 405.More

US consumers languish in the trap of luxury
The Wall Street Journal
Companies selling goods to affluent Americans mostly have done better than those selling to the less well-off. But there are limits to their success. The years since the recession haven't been good to the lower and middle classes. A household at the top of the bottom fifth by income made $20,599 in 2012, according to the Census Bureau.More

Wal-Mart CEO says retailer may consider buying 3-D printer maker
Bloomberg
Wal-Mart Stores Inc. Chief Executive Officer Doug McMillon said the world's largest retailer may use 3-D printers for producing supplies and might even make an acquisition in the market. "Three-D printing is interesting to me," said McMillon at the Code Conference in Rancho Palos Verdes, California. "We can use 3-D printing over time for replacement parts." More

Demand for luxury, new stores drive strong Q4 for Michael Kors
Chain Store Age
Michael Kors Holdings attributed impressive growth in net income, total revenues and same-store sales during fourth quarter 2014 to strong global demand for luxury items. Net income for the three months ended March 29 rose 59 percent to $161 million, from $101.1 million last year. More

Target to test same-day delivery
Multichannel Merchant
Target will test same-day delivery next month in three markets, the discount department store merchant said May 21 during its first-quarter earnings call. Chief Merchandise and Supply Chain Officer Kathryn Tesija said that following a successful ship-from-store test in Minneapolis, Target plans to launch the same-day delivery pilot program in that market, as well as the Boston and Miami markets.More

Target revamping merchandising, bureaucracy post breach
Bloomberg
Target Corp. Interim Chief Executive Officer John Mulligan said that even before December's massive data breach, the retailer had lost its way by becoming too cautious and bureaucratic. The theft of credit-card data for 40 million customers has forced the company to refocus on pleasing shoppers and reconsider everything from how it presents apparel to how it makes decisions, said Mulligan in an interview. More

Mars unwraps biggest innovation in Twix brand history
CSP Magazine
Mars Chocolate North America has introduced Twix Bites, which the company said is the biggest innovation in Twix brand history. Offering the same caramel, crunchy cookie and milk chocolate as a full-size Twix Bar, Twix Bites come unwrapped and are now available nationwide at convenience store, drug, mass, grocery, specialty, value and vending machine locations. More

7-Eleven's 16-state sale focuses on Southeast
CSP Magazine
Pruning locations it said do not fit its retailing profile, 7-Eleven Inc. is selling 75 gas stations and convenience stores, including 31 locations in Florida, 14 in Virginia, six in Massachusetts and Illinois, three in Texas, two in New York, Delaware, New Jersey and Utah and one each in Arizona, Connecticut, Indiana, Maryland, Michigan, Pennsylvania and Vermont.More

Retailers divided on Reynolds-Lorillard deal
CSP Magazine
Recently, Wells Fargo analyst Bonnie Herzog speculated that a deal between Reynolds American Inc. and Lorillard Inc. was moving forward, describing the very likely acquisition as "a value creating transaction for both Reynolds and Lorillard shareholders". It is less clear whether such a deal would benefit tobacco retailers.More

A busy summer on tap for iced tea
CSP Magazine
As consumers shake off the recent long, cold winter, iced-tea makers are primed to make sure the keep cool and hydrated this spring and summer, as illustrated by a bevy of iced-tea-related news to hit the wires this week. The following is a brief digest of what convenience retailers and consumer can expect.More

Illinois House rejects sugary drinks tax
CSP Magazine
A bid to fight obesity through taxing sweetened drinks failed May 27 as an Illinois House committee rejected a plan that would have charged a penny more per ounce on sweetened beverages, making a two-liter bottle of soda cost about 67 cents more than its artificially sweetened, zero-calorie counterpart, reported The Chicago Sun-Times.More

Data: Beverage sales rise 4.3 percent as weather warms
CSP Magazine
Beverage sales are up 4.3 percent in convenience stores so far during the second quarter, according to a Wells Fargo Securities survey of convenience retailers. The increase "is significantly higher than the retailer expectations of a 1.3 percent increase for Q2 last year," analyst bonnie Herzog wrote in a summary of the survey. More

Decadence and differentiation
CSP Magazine
The footprint of high-end, craft and natural confection at the annual Sweets & Snacks Expo continues to grow, reflecting the ongoing consumer desire for affordable luxuries. Meanwhile, legacy candy brands had their R&D teams working at full throttle to deliver a wide array of new extensions on perennial favorites in time for the show. All these trends and their reflective products will appear on convenience-store shelves in the year to come. More

2-star outlines impending officer, NCO separations
Army Times
The Army has flagged nearly 2,500 officers and non-commissioned officers for involuntary separation as its works toward an end-strength of 490,000, and it's eyeing even more cuts in the coming year.More

Morale, welfare, recreation customer survey rolls out
Peninsula Warrior
Does your base fitness center need new equipment? Do you want more recreational traveling opportunities? Do you think there aren't enough recreational opportunities for single service members, or do you think there are too many? You have your chance to make a difference by answering the Defense Department's Morale, Welfare and Recreation Customer Satisfaction Survey, which began arriving in service members' email boxes starting May 14.More

Yamada bill move to Senate
Times-Herald
Three assembly bills by Assemblymember Mariko Yamada, D-Davis, passed the Assembly and move on to the Senate, Yamada's office announced. "Our bills focus on leveling the playing field for low-income Californians and strengthening accountability in state institutions," said Yamada in the announcement. More

Contractors can't duck head-count fraud claim
Courthouse News Service
Kellogg, Brown & Root and Halliburton must face claims that they bilked the government by inflating the number of soldiers who used their Iraq facilities in order to boost fees, a federal judge recently ruled.More

Obituary: Richard Allen Combs Sr., age 59
The Citizen
Richard Allen Combs Sr., age 59, of Ellijay, Ga., formerly of Peachtree City, Ga., passed from this life on Sunday, May 25, 2014, at his residence in Ellijay, Ga. Mr. Combs worked in Civil Service for the U.S. Government for over 30 years, and retired as Chief of Family Morale, Welfare and Recreation, Atlantic Region, IMCOM, Joint Base Langley-Eustis, Virginia.More