1. Delivering the Commissary Benefit Your Commissary … It’s Worth the Trip! Better Opportunities for Single Soldiers (BOSS) Future Leader Forum and Training CMSgt Stuart M. Allison DeCA Senior Enlisted Advisor

2. Your Commissary … It’s Worth the Trip! 241 commissaries 13 countries 13,000 + employees – 65.4% military related* $5.6B annual sales 90M annual transactions 30% average savings vs. grocery stores/all food outlets 145+ years serving the nation We sell groceries at cost plus 5% surcharge DeCA by the Numbers 2 *Percentage of DeCA U.S. Civilian Employee Population

3. Your Commissary … It’s Worth the Trip! Commissaries deliver a vital element of military compensation –Sell grocery items at cost –Enhance quality of life –Support military readiness, recruitment and retention Other benefits to military community –Industry giveaways and scholarships support –Source of employment for spouses, dependents –Increases foot traffic for Exchange and MWR Part of Non-pay Compensation 3

4. Your Commissary … It’s Worth the Trip! Military Spouses – 3,747 or 27.08% Dependents – 1,010 or 7.3% Sponsors: – Retirees – 1,749 or 12.64% – Guard and Reserve – 344 or 2.49% Other Veterans – 2,206 or 15.94% Military-related Employment 4 65.4% Population – 13,838 DeCA U.S. civilian employees as of March 31, 2015

5. Your Commissary … It’s Worth the Trip! Why is it that the commissary … Requirements, prohibitions or not authorized in law Regulated by law or DoD policy 5 Adds a surcharge Won’t price match Sells no beer or wine Won’t double coupons Doesn’t pay baggers Isn’t combined with Exchanges ?? ?

6. Your Commissary … It’s Worth the Trip! 6 Commissary Savings – The Real Deal What’s the math behind “30% savings”? Use comprehensive database from Nielsen for U.S. commercial grocery store and commissary prices Used more than 38,000 scanned grocery items in 2014 analysis For non-scannable items (fresh meat, produce), record prices at 30 commissaries and 60 outside retailers at each site For overseas stores, do physical audit at 2 commissaries in Alaska, 2 in Hawaii and 13 overseas, plus 2 outside grocery stores at each site

7. Your Commissary … It’s Worth the Trip! DeCA’s Extra Value Programs Value Brand We Compared – You Save ! –Highlights items that are competitive when compared to store/private label brands in the commercial sector –Value brands must be consistently lower in price and of equal or better quality to store or private label brands 7 VB items offer 20% Savings –Compared to private label Commissary Rewards Card Examples of past vendor promotions Buy four Dr. Pepper/Snapple items for a chance to win four round trip airline tickets, 6 days & 5 night hotel stay with $1,000 spending money Spend $25 on Con Agra products, receive a $5 off total purchase digital coupon Buy 4 Kellogg’s products to be entered for a chance to win a trip to Washington, D.C Buy 4 Kellogg’s products to be entered for a chance to win free groceries for a year. Number of digital coupons redeemed 6,832,956 Dollar value of digital coupons redeemed $7,551,681 Number of coupons downloaded 58,138,293

8. Your Commissary … It’s Worth the Trip! Commissary Awareness 8 DeCA uses social media for: –Two-way communication and engagement –Enhanced customer feedback –Deliver Hub-and-Spoke communication –Educate patrons about their benefit –DeCA’s sales, events, promotions –Sales Flyer –Share relevant DoD information

9. Your Commissary … It’s Worth the Trip! HEALTHY EATING – IT’S EASIER THAN YOU THINK! 9

10. Your Commissary … It’s Worth the Trip! Thinking Outside the Box Produce Corner

11. Your Commissary … It’s Worth the Trip! Health Promotion in the Sales Flyer Healthy Meal Solution- “Thinking Outside the Box” –Partnering with DOD health and wellness stakeholders like the Performance Triad and Operation Live Well to align nutrition messaging and promote –Meal features items on promotion and provides grocery cost, meal cost and individual serving cost – Beginning in 2016 shelf stable items will be featured as an endcap Produce Corner- Recipe promoting in-season produce 11

12. Your Commissary … It’s Worth the Trip! DeCA’s Nutrition Guide Program PURPOSE –Provides nutrition educational information relevant to shoppers’ interests and dietary needs at the point of purchase –Quick and easy way to identify healthier choices –Expedites the shoppers’ search; eases confusion; and leads them to healthier choices –An additional resource for our military community that is consistent across all commissaries –Information for reference to assist with DoD’s health promotion efforts COMING SOON –January/February 2016 pilot/implementation 12

13. Your Commissary … It’s Worth the Trip! DeCA’s Nutrition Guide Mock Tag Attributes are examples only

14. Final thoughts and the way ahead Your Commissary … It’s Worth the Trip! 14

15. Your Commissary … It’s Worth the Trip! A benefit that has been in place for over 145 years – however faces intense scrutiny as DoD balances resources to readiness DeCA has been aggressive in reducing its costs DeCA continuing with transformation and modernization of the commissary business to be more efficient and responsive Taking care of military members is priority! Commissary – Benefit & Business 15

16. 16 Innovative Suggestions?