222

• Military Readiness

– Peace of Mind: focus on mission

– Recruitment: family member advocacy

– Retention: Service Members rate commissary among their top quality

of life services

• Quality of Life

– Savings: family of four saves over $4,400 per year

2 to 1 return on investment

– Ancillary Industry Support: contributions to Installations, giveaways,

scholarships, income opportunities

– Military Related Employment: 62.5% of U.S. employees

• Favorable Impact on DoD Costs – Defense Transportation System: a leading peacetime shipper

of military goods overseas

– Cost of Living Allowance: adjusted for commissary benefit

33

Resale TrendsResale Trends

  FY 2010 FY 2009 Change % Change

Sales $5.84B $5.98B -$136.3M -2.28%

Transactions 94.79M 94.75M 0.04M 0.04%

Basket Size $61.66 $63.12 -$1.46 -2.32%

Over $2.69B in Patron Savings Generated!Over $2.69B in Patron Savings Generated!Over $2.69B in Patron Savings Generated!Over $2.69B in Patron Savings Generated!

44

$4,800

$5,000

$5,200

$5,400

$5,600

$5,800

$6,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

FY 2010 Sales, although down from FY 2009, were still very strong compared

to recent history!

FY 2010 Sales, although down from FY 2009, were still very strong compared

to recent history!

55

Sales FY 2010 FY 2009 Change % Change

DECA EAST $ 2,736,306,661 $ 2,825,532,761 -$89,226,100 -3.16%

DECA EUROPE

$ 506,351,602 $ 504,642,025 $1,709,577 0.34%

DECA WEST $ 2,601,982,814 $ 2,650,755,360 -$48,772,546 -1.84%

DeCA Total $ 5,844,641,077 $ 5,980,930,146 -$136,289,069 -2.28%

         

Transactions FY 2010 FY 2009 Change % Change

DECA EAST 40,465,344 40,948,540 (483,196) -1.18%

DECA EUROPE

11,333,044 11,233,242 99,802 0.89%

DECA WEST 42,993,490 42,571,086 422,404 0.99%

DeCA Total 94,791,878 94,752,868 39,010 0.04%

Transactions Remained StableTransactions Remained StableTransactions Remained StableTransactions Remained Stable

66666

FY 2008-2010 Overall Patron Savings more than $9MFY 2008-2010 Overall Patron Savings more than $9MFY 2008-2010 Overall Patron Savings more than $9MFY 2008-2010 Overall Patron Savings more than $9M

• FY 2008 to FY 2009 Comparison

– Sales increased 105%

– Customer count increased 100%

– Average customer basket size increased to over $110

• FY 2010 Business

– Completed 156 events totaling more than $8.3M in sales

– Average customer basket size has increased to nearly $125

• Served more than 192K since start of program

77

• Commissary Customer Satisfaction Index (CCSS)

– Patron Satisfaction

– 4.68 (out of 5.0)

• American Customer Satisfaction Index (ACSI)

– National average for commercial grocers: 76

– DeCA’s score: 80

Customer Service at All Time High!Customer Service at All Time High!Customer Service at All Time High!Customer Service at All Time High!

888

• Military spouses & family members = 42%

– Military spouses – 4,385 or 28%

– Other family members – 2,138 or 14%

• Sponsors = 11.5%

– Retirees – 1,632 or 10%

– Guard and Reserve – 239 or 1.5%

• Other veterans = 1,500 or 9%

9,894 U.S. Employees are Military Related9,894 U.S. Employees are Military Related9,894 U.S. Employees are Military Related9,894 U.S. Employees are Military Related

Total

62.5%

Total

62.5%

99

Keesler AFB, MS

Chievres AB, BE

1010

Eglin AFB, Fla.

Moody AFB, Ga.

Fort Riley, Kan.

NAS-JRB, New Orleans, La.

Fort Campbell, Ky.

Fort Bliss, Texas

111111

Gift of GroceriesGift of GroceriesGift of GroceriesGift of Groceries

• Turn key gift card program

– Effective January 15, 2011

• Replace existing paper voucher program

• Available in two denominations

– $25.00 and $50.00

• Purchase at store or through Internet

• Reduced labor and costs through technology

1212

• Loyalty card in source selection process

• Evaluations being conducted based on

information received as result of solicitation

• Goal: 3rd Quarter FY 2011

1313

• Participation rate has increased 60% in the last year

• Notice to the Trade 10-59, Brand Name Resale Swell

Allowance Program

• POC: Marye Carr

– marye.carr@deca.mil

– 804-734-8000, extension 5-2781

14

Company Bank Account

Review and Approve

Entr

y in

to C

ARTS

CARTS System

Sales Rep

Company Credit Card Acct

Company SEBBS Mgr

Company SEBBS Mgr

Company Unit Mgr

Company Business Mgr

Company A/P Admin

to CompanyCompany

15151515

• Facebook page– Interactive medium

– 7,740-plus fans

– More than 4,000 hits per month

• DeCA Twitter/DeCA Dietitian Twitter– Connected to Facebook posts

– 380 and 2,340 respectively

• DeCA You Tube– Video recordings

• DeCA FLICKR page– Still photos and video recordings

16161616

• DeCA Radio Shows

• Future campaigns tied to promotion calendar

• Customer appreciation campaign “Your

Family is Our Family”

• Shop After Work campaign

• Great Inside-the-Gate campaign

– Promoting the base/post as a place of savings,

value, activities, and fun

1717

• Over past three decades childhood obesity rates in

America have tripled

• Nearly one in three children are overweight or obese –

greater risk for health problems

• National security is at risk

• More than one quarter Americans ages 17-24 are

unqualified for military service because too heavy

• Several key military leaders are raising awareness and

calling for action

““Obesity is a Critical Long-term Challenge for the Nation”Obesity is a Critical Long-term Challenge for the Nation”““Obesity is a Critical Long-term Challenge for the Nation”Obesity is a Critical Long-term Challenge for the Nation”

1818

• First Lady launched Let’s Move! Campaign in February

2010

– Centered on ambitious goal to solve the problem of

childhood obesity

• President created Childhood Obesity Task Force

– Charged to develop national action plan to address public

health crisis

– Report released in May 2010, detailing over 70

recommendations

Goal: To Solve the Problem of Childhood ObesityGoal: To Solve the Problem of Childhood ObesityGoal: To Solve the Problem of Childhood ObesityGoal: To Solve the Problem of Childhood Obesity

1919

• Commissaries provide a unique opportunity to support

these initiatives

• Empower parents to make healthier choices

– Product placement highlighting healthy choices

– Education at point of purchase

– Healthy recipes

– Offer healthy choices at check-out lanes

• Increase demand for fruits, vegetables, and reformulated

products with less sugar, salt, trans and saturated fats

•

Great Opportunity to Support “Lets Move!” Campaign Great Opportunity to Support “Lets Move!” Campaign Great Opportunity to Support “Lets Move!” Campaign Great Opportunity to Support “Lets Move!” Campaign

2020

• Expand “Food for Thought” program

– Partnership with DoDEA, currently in Europe schools

– Nutrition curriculum that includes commissary connection

component

• Commissary “Lets Move!” healthy kid events

• Month of Military Child (April)

– Develop healthy life-long eating habits

• National Fitness Month/Family Fun Fitness Festival (May)

− Case lot sale, partnering with MWR and exchanges

2121

Lewis-Main Commissary “Lets Move!” Healthy Kid Event Lewis-Main Commissary “Lets Move!” Healthy Kid Event Lewis-Main Commissary “Lets Move!” Healthy Kid Event Lewis-Main Commissary “Lets Move!” Healthy Kid Event

2222

• Military Resale (Exchanges)

• Morale Welfare & Recreation

• Private Organizations

• Installation Chaplains

• DeCA Patron Council

• Defense School System

• Scholarships for Military Children

• Industry

2323

FY92 FY94 FY96 FY98 FY00 FY02 FY04 FY06 FY08 FY10

Baseline w/o Reductions 1,063 1,221 1,287 1,306 1,373 1,517 1,659 1,793 1,911 2,018

Actual Costs w/Reductions 1,028 1,088 982 971 1,019 1,053 1,123 1,203 1,263 1,327

Cost (FY 1992 Constant $) 1,028 981 797 726 683 647 649 628 563 568

Efficiencies 35 133 305 336 354 464 536 591 648 692

0

250

500

750

1,000

1,250

1,500

1,750

2,000

2,250

*Savings from BRAC & OCONUS CFE are not included in above

Efficiencies FY92 – FY10:

$692M

Inflation FY92 – FY10:

$759M

Baseline had no efficiencies been achieved

Actual Costs w/Reductions

Cost (FY 1992 Constant $)

242424

•Shifting overhead costs to force structure and

future modernization

•Inviting outside experts to suggest ways the

Department can be more efficient

– Defense Business Board

•Front-End Assessments – FY 2012 Budget

•Reduce excess and duplication across the

defense enterprise – Organizational

Assessments and Zero-Based Reviews

Moving Toward More Efficient, Effective, Cost-Conscious Way of Doing Business Moving Toward More Efficient, Effective, Cost-Conscious Way of Doing Business Moving Toward More Efficient, Effective, Cost-Conscious Way of Doing Business Moving Toward More Efficient, Effective, Cost-Conscious Way of Doing Business

252525

•FY 2011 budget in flux

•Continuing Resolution Authority

– 64 days (December 3)

•No new initiatives until budget approved

•Phase III of Organizational Assessment due

October 29

26One Vision, One Team, One DeCAOne Vision, One Team, One DeCA

We have Passion for what we do!

P We PURSUE EXCELLENCE

A We are ACCOUNTABLE and FISCALLY RESPONSIBLE

S We have a SENSE OF URGENCY

S We SET HIGH STANDARDS

I We value INNOVATION

O We take OWNERSHIP of our PERFORMANCE

N We are NECESSARY