deca update

DEFENSE COMMISSARY AGENCY

DeCA

Your Commissary … It’s Worth the Trip!


DeCA UpdateAmerican Logistics Association 67th Annual Convention

Mr. Joseph H. Jeu Director

October 28, 2014

DeCA



Defense Commissary Agency

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Why customers say, “The Commissary … It’s Worth the Trip!”

A DeCA Video Presentation

Taking Care of Military Families

DeCA




• Budget update– DoD budget proposed a phased reduction of $200M in

FY15, $600M in FY16, and $1B in FY17– FY15 continuing resolution funds DeCA at FY14 level

• House, Senate rejected DoD’s legislative proposal– House NDAA directs study by an independent grocery

expert on impact of budgetary proposal of commissary operations including the addition of private label items

– SASC report requires a less detailed study than that requested by the House for submission to the MCRMC

– House restored $100M and the Senate $200M in funding

Political Landscape

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• FY14 Sales: $5.625 billion• Momentum from last half of the year

– Case Lot Sales re-instated– Monthly sales meetings– Guard & Reserve on-site sales

FY14 Sales and Transactions

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http://www.commissaries.com/stores/html/store.cfm?dodaac=N&page=case_lot_dates

DeCA




FY15 Sales Goal

$5.8 Billion

• About 3% over FY 2014 Sales• With your support – We Can Do It!

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Vision & Strategies – Set in 2012

• New Vision – Understand our Customers and Deliver a 21st Century Commissary Benefit

• Established Key Strategies– Study and support consumer shopping trends - leverage

social media to gain insight into our evolving customers

– Explore emerging concepts such as electronic and mobile commerce and other business model improvements

– Employ new efficiencies in construction, technology and operations

DeCA




• I.D. Card Scanning• Branding Study

– Creates a “Commissary” culture

– Improves standardization and consistency

• Social Media

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Strategy – Manage Customer Relations

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Sales Flyer

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• Commissary sells value brands at lower prices– Significantly lower prices than

other national brands within commissary

– Equal or lower prices than other retailers’ average in-house or private label brands

• DeCA plans to spotlight Value Brand– Easier to see on the shelves

Strategy - Value Brand Program Re-energized

DeCA




Strategy - Health & Wellness Initiatives

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The commissary is one of the most important tools you have for the health and well-being of the military in this country.

– Senator Barbara Mikulski

• HBI/Better for You

• Natural & Organic

• Healthier Eating

DeCA




• CLICK2GO– Three locations (Fort Lee, Offutt AFB, Travis AFB)– Meeting pilot metrics

• Rewards Card– Continued acceptance and growth– Digital Coupons

• Commissary Apps• Warehouse Format

− Hybrid at Imperial Beach− Club Store in a Store at McChord AFB

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Strategy – E&M Commerce and Store Formats

DeCA




• Construction– Standard design– Lower cost construction alternatives– Third party construction study

• Technology– EBS/CARTS

• Operations– Store level efficiencies (Electronic Shelf Labels, SCO)– Commercial Activities contract reviews– Workforce Analysis

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Strategy – Ongoing Efficiencies

DeCA




New Construction Completed in 2014

New London, CT

Surcharge Funded Opened April 16

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Pittsburgh Area, PA

Congressionally Funded Opened October 21

Gunter Annex, Maxwell AFB, AL

Surcharge Funded Opened August 5

Annapolis, MD

Surcharge Funded Opened September 10

DEFENSE COMMISSARY AGENCY

DeCA



Thank You!For your continuing support

of our patrons and this benefit

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