deca update
DESCRIPTION
DeCA Update. American Logistics Association 67th Annual Convention. Mr. Joseph H. Jeu Director. October 28, 2014. Taking Care of Military Families. Why customers say, “The Commissary … It’s Worth the Trip!” A DeCA Video Presentation. Political Landscape. Budget update - PowerPoint PPT PresentationTRANSCRIPT
DEFENSE COMMISSARY AGENCY
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
DeCA UpdateAmerican Logistics Association 67th Annual Convention
Mr. Joseph H. Jeu Director
October 28, 2014
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
2
Why customers say, “The Commissary … It’s Worth the Trip!”
A DeCA Video Presentation
Taking Care of Military Families
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
• 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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DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
• 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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DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
FY15 Sales Goal
$5.8 Billion
• About 3% over FY 2014 Sales• With your support – We Can Do It!
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DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
6
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
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
• I.D. Card Scanning• Branding Study
– Creates a “Commissary” culture
– Improves standardization and consistency
• Social Media
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Strategy – Manage Customer Relations
DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
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Sales Flyer
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DeCA
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
• 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
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
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
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
• 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
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
• 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
Your Commissary … It’s Worth the Trip!
Your Commissary … It’s Worth the Trip!
Defense Commissary Agency
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