Transcript Slide 1

Defense Commissary Agency, Europe
The State of
2 August 2006
Heidelberg, Germany
Michael J. Dowling
Director
2 Aug 06
DeCA/EU-CC
Slide 1 of 39 Slides
Agenda
• Overview
• CDCs
• Sales
• Construction
• Transformation
2 Aug 06
DeCA/EU-CC
Slide 2 of 39 Slides
Area of Responsibility
2 Aug 06
DeCA/EU-CC
Slide 3 of 39 Slides
Surroundings
• Force Protection Condition Bravo+
– Higher in some locations
• Deployments & redeployments continue
• Family stress levels up with separations
• Sense of anxiety over future
2 Aug 06
DeCA/EU-CC
Slide 4 of 39 Slides
Where We Are Today
• Commitment from business partners
•
•
•
•
Customer satisfaction ratings at all time high
Increased variety & selection
Shopping savings over 30%
Averaging 98% to 99% in-stock rates
• Culturally diverse workforce
• Supporting over 40 American embassies
• Employee turnover on the rise
2 Aug 06
DeCA/EU-CC
Slide 5 of 39 Slides
Typical DeCA Europe Patron
• Junior enlisted service member and spouse
• Household 3 to 4 people
• Lives on base or within 12 miles of commissary
• Averages 5 visits per month
• Spends around $500/mo
2 Aug 06
DeCA/EU-CC
Slide 6 of 39 Slides
CDCs
• Germersheim
– 710K SF warehouse space
– 275+ employees
• Kaiserslautern
– 125K SF
– 140+ employees
• Lakenheath
– 58K SF
– 80+ employees
• Marktundkuehlhallen Mannheim
– Commercial storage
- Up to 3,000 pallets for freeze overflow
2 Aug 06
DeCA/EU-CC
Slide 7 of 39 Slides
Capacities
• All CDCs at or near threshold
• Slotting & racking continue to be fully utilized
• Seasonal & holiday items max out operations
• Line items carried remain relatively steady
2 Aug 06
DeCA/EU-CC
Slide 8 of 39 Slides
CDC Statistics
End of June 2006
CDC-G CDC-K
CDC-L RCMPP
In-Stock %
99.2
99.0
99.3
99.9
CDC Cases/
CMPP Lbs Shipped
826K
417K
124K
1.21M
Inv EOM ($)
33.2M
9.3M
3.1M
1.2M
Inv/Sales Ratio
1.87
0.77
1.17
0.34
Line Items
Containers
Unloaded
Detention ($)
7,821
1,638
6,777
123
625
386
68
57
0
0
0
0
2 Aug 06
DeCA/EU-CC
Slide 9 of 39 Slides
Downrange Support
4,000
$ Shipped (000's)
3,500
3,000
FY02
2,500
2,000
FY03
1,500
FY04
FY05
1,000
FY06 thru
June
500
0
AAFES Kuwait
2 Aug 06
AAFES Iraq
DeCA/EU-CC
Slide 10 of 39 Slides
Sales Trend
DeCA Europe
500
480
In $M
460
440
420
400
380
360
FY01
FY02
FY03
FY04
FY05
FY06*
*Projected
2 Aug 06
DeCA/EU-CC
Slide 11 of 39 Slides
Total Region Sales FY06 vs. FY05
45
Down 5.3% thru June vs. last year
In $M
40
35
30
25
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
FY05
2 Aug 06
FY06
DeCA/EU-CC
Slide 12 of 39 Slides
Store Sales Only
FY06 vs. FY05
Down 4.8% thru June vs. last year
Sales in $M
40
35
30
25
Oct
Nov
Dec
Jan
Feb
Mar
FY05
2 Aug 06
Apr
FY06
DeCA/EU-CC
May
Jun
Jul
Aug
Sep
Calendar Days
Slide 13 of 39 Slides
Customer Count Comparison
FY06 vs. FY05
Down 6.7% thru June vs. last year
1100
1000
Count (000)
900
800
700
600
500
Oct
Nov
Dec
Jan
Feb
Mar
FY05
2 Aug 06
Apr
May
Jun
Jul
Aug
Sep
FY06
DeCA/EU-CC
Slide 14 of 39 Slides
Store Sales By Location
• 48.5% of sales at Army locations
– 63% of our stores are on Army posts
• 39.9% at Air Force
– 28% on Air Force bases
• 11.6% at Navy*
– 9% on Navy installations
*Includes sales to NEXMARTs
2 Aug 06
DeCA/EU-CC
Slide 15 of 39 Slides
Ranking Highest Volume Stores
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
2 Aug 06
Ramstein
RAF Lakenheath
Vogelweh
Heidelberg
Naples
Wiesbaden
Aviano
Hanau
Würzburg
Mannheim
Patch Barracks
Bitburg
Vicenza
Sigonella
Chiévres
DeCA/EU-CC
Slide 16 of 39 Slides
Current Major Projects
COMMISSARY
2 Aug 06
COST
DESCRIPTION $(M)
Grafenwöhr, GE
Replace
14.7
NS Rota, SP
Replace
11.3
DeCA/EU-CC
STATUS
Est. Completion
Apr 07
Est. Completion
Jul 07
Slide 17 of 39 Slides
Grafenwöhr Floor Plan
• Store 47K SF; sales floor area 27.3K SF
• Enlarged departments throughout
2 Aug 06
DeCA/EU-CC
Slide 18 of 39 Slides
Rota Floor Plan
• Store 50K SF; sales floor area 22.3K SF
• Enlarged departments throughout
2 Aug 06
DeCA/EU-CC
Slide 19 of 39 Slides
Future Major Projects
FY
COST
PROGRAM COMMISSARY DESCRIPTION $(M)
Chiévres AB,
07
Replace
15.4
BE
Camp Darby
07
Replace
7.5
(Livorno), IT
Ramstein AB,
08
Replace
29.2
GE
2 Aug 06
DeCA/EU-CC
STATUS
In Design
In Design
Design on
Hold
Slide 20 of 39 Slides
ENTRY
4TFPE6
3-2B03B
4TFPE6
3-4HW1
4TFPE6
1D04A
1
Ho B1
od 5
2R16
2R16
2R16
1P07-12
1D00-8
1B10A
4SMA
1D21
4SPPM
1D17B
1D00-8
4SMA
4SPPM
1D21
1B30A
2R16
2P07B
2M06
4S00
4S03-D
1B31A
1P19
4TFPE-6
3-2A01-4
3-2A06A
2A16
2G14-I
ENTRY
2G14-I
JAN
CART
STOR
WOMEN
2G24-G
2G14-I
MEN
MONITOR
SELF
CHECK
OUT (2)
2G14-I
2G14-C
2G14-C
2G14-C
1M07-12
EXIT
EXIT
1
2G14-I
4
2G14-I
5
ATM
CASHIER
OFFICE
CASH
COUNTING
CHECKSTANDS
3
2G14-I
2G14-C
2
1M04-8
2G14-C
CART
RTN
8
7
1M04-8
1G10-8
DOCK
2G14-C
MEAT
1M07-8
1M00
REC'G
OFF
FROZEN FOOD
STORAGE
2,447 SF
STAGING/RECEIVING
6,060 SF
1M07-12
PROD
MGR
STOR
GROC
MGR
MHE
CHARGING
AREA
2G14-C
2G24-G
DAMAGED
MERCHANDISE
1P07-12
4S03D
PRODUCE
PREP
4IFNIS
PRODUCE
AMBIENT
DELI
BAKERY
PRODUCE
1P02-12
2R16
PRODUCE
CHILL
NON-GAS
2R16
2R16
WOMEN'S
LOCKER
STORAGE
476 SF
PRODUCE
CHILL
GAS
2R16
WOMEN
CORR
MASS
DISPLAY
2R16
4SMA
MEN
JAN
2R16
MEN'S
LOCKER
1P02 WIL HAVE 2 SHELVES WITH LIGHTS
2R16
2R16
2R16
2G14A
2R16
2R16
2R16
2G14A
2R16
2R16
1M04-12
TOBACCO
1G10A-3
VEST
BAGGER
BREAK
6
1G10A-3
COMM
2R16
2R16
2G14A
2R16
2G14A
2R16
2R16
2G14A
2R16
2R16
2G14A
2R16
1,120 LF GONDOLA SHELVING
2R16
2R16
2R16
2R16
2R16
2R16
2R16
2R16
2R16
1R00A
2R16
2R16
2R16
2R16
2R16
2R16
2G14A
2R16
2R16
2R16
2R16
2R16
2R16
1P02-12
1P02-12
1P02-12
1P02-12
1P02-8
1G10-5
BREAKROOM
4S00
1G10-5
1G10-5
1G10-5
MED FOOD
INSPECTION
2M06
2R16
2R16
2R16
2R16
2R16
2R16
1G10A-3
CISIC
TRAINING
1G12-5
1G01
ADMIN
STORE
ADMIN
STORE
DIRECTOR
1G12-5
FROZEN FOODS
1G10A-3
1G06
1G07-12
1G06
DAIRY
1G14-8
DAIRY CHILL
868 SF
1G14-12
2R16
2R16
4TFPBS-6
4SPPM
PRE-PACK/POULTRY
& MEAT COOLER
1,111 SF
Vendor Stock
Weigh Area
scale/labeler
2R16
1G12-5
1G10-5
1G10-5
1G10-5
1G10-5
1G10-5
1G10-5
1G10-5
1G10-5
1G10-5
1G10-5
1G10-4
1G10-5
1G12-5
1G12-4
1G10-5
2R16
2R16
2R16
2R16
2R16
2R16
2R16
2R16
1G02-12
1G02-12
1G02-12
1G02-12
1G02-12
1G02-12
1G12-3
DeCA/EU-CC
1G12-4
2 Aug 06
1G12-5
DUMPSTERS
SENSITIVE
STORAGE
MECHANICAL
CENTER
FIRE/
ELEC
STAIR
VENDOR
ROOM
Chiévres Floor Plan
• Store 45K SF; sales floor area 22.8K SF
• Enlarged departments throughout
Slide 21 of 39 Slides
Livorno Floor Plan
• Store 25K SF; sales floor area 10.9K SF
• Enlarged departments throughout
2 Aug 06
DeCA/EU-CC
Slide 22 of 39 Slides
Ramstein Floor Plan
• Store 86K SF; sales floor area 47.1K SF
• Enlarged departments throughout
2 Aug 06
DeCA/EU-CC
Slide 23 of 39 Slides
Major Projects For Out Years
2008 and Beyond
COST
COMMISSARY DESCRIPTION $(M)
Spangdahlem
Replace
TBD
AB, GE
Ansbach, GE
Replace
8.3
Wiesbaden, GE
Replace
16.8
Panzer
Kaserne, GE
Replace
TBD
STATUS
Scope Requirements
Identified
Scope Requirements
Identified
Scope Requirements
Identified
Scope Requirements
Not Yet Identified
Bottom Line: Subject to the military services' emphasis
2 Aug 06
DeCA/EU-CC
Slide 24 of 39 Slides
Minor Construction
Sustainment Program
COST
FY
LOCATION DESCRIPTION $(K) PROGRAM
Wiesbaden,
Equip/Dock/
2,500
04
GE
M&R
RAF Fairford, Equip/Floor/
2,200
04
UK
M&R
RAF Menwith Equip/Expand
3,700
05
Hill, UK
Sales Area
RAF
Equip/Floor/
TBA
07
Alconbury, UK
M&R
2 Aug 06
DeCA/EU-CC
PHASE
Completed
Jan 06
Completed
Apr 06
In Solicitation
In Design
Slide 25 of 39 Slides
Estimating*
Transformation**
by Zone
2006 to End State
*Timeline moving target - event driven - subject to change
**Installation closure details released when unit transfers
& dates are firm
2 Aug 06
DeCA/EU-CC
Slide 26 of 39 Slides
UK Zone 2006 and Beyond
Expected To Remain Stable
the Netherlands
9 Commissaries
Schinnen
RAF Menwith Hill
England
RAF Alconbury
Chiévres
RAF Lakenheath
Belgium
RAF Croughton
RAF Fairford
Portugal
the Azores
RAF Mildenhall
Sales
FY05: $78M
Est. End State: $74.3M
(Terceira Island)
Lajes Field
2 Aug 06
DeCA/EU-CC
Slide 27 of 39 Slides
Med Zone 2006 and Beyond
Expected To Remain Stable
Vicenza
Aviano
Italy
Livorno
Turkey
Ankara
12 Commissaries
Izmir
Naples
Incirlik
Sigonella
Mineo
Cairo
Spain
Rota
2 Aug 06
Egypt
Sales
FY05: $89.9M
Est. End State: $88M
DeCA/EU-CC
Riyadh
Saudi Arabia
Slide 28 of 39 Slides
Bamberg Zone Beginning FY06
Keflavik
Germany
13 Commissaries
Bamberg
Bad Kissingen
Grafenwöhr
Schweinfurt
Vilseck
Würzburg
Kitzingen
Giebelstadt
Illesheim
Sales
FY05: $72.3M
Hohenfels
Ansbach
Garmisch
2 Aug 06
DeCA/EU-CC
Slide 29 of 39 Slides
Bamberg Zone End FY09
Keflavik
Germany
8 Commissaries
Bamberg
Bad Kissingen
Grafenwöhr
Schweinfurt
Vilseck
Würzburg
Kitzingen
Giebelstadt
Illesheim
Sales
Est. FY09: $55M
Hohenfels
Ansbach
Garmisch
2 Aug 06
DeCA/EU-CC
Slide 30 of 39 Slides
Bamberg Zone End State
Keflavik
Germany
5 Commissaries
Bamberg
Bad Kissingen
Grafenwöhr
Schweinfurt
Vilseck
Würzburg
Kitzingen
Giebelstadt
Illesheim
Sales
Est. End State: $35.7M
Hohenfels
Ansbach
Garmisch
2 Aug 06
DeCA/EU-CC
Slide 31 of 39 Slides
Ramstein Zone Beginning FY06
11 Commissaries
Germany
Idar-Oberstein
Neubrücke
Baumholder
Ramstein
Sembach
Heidelberg
Sales
FY05: $142.9M
Kelley
Vogelweh
Patch
Mannheim
2 Aug 06
Panzer
DeCA/EU-CC
Slide 32 of 39 Slides
Ramstein Zone End FY09
11 Commissaries
Germany
Idar-Oberstein
Neubrücke
Baumholder
Ramstein
Sembach
Heidelberg
Sales
Est. FY09: $136.1M
Kelley
Vogelweh
Patch
Mannheim
2 Aug 06
Panzer
DeCA/EU-CC
Slide 33 of 39 Slides
Ramstein Zone End State
6 Commissaries
Germany
Idar-Oberstein
Neubrücke
Baumholder
Ramstein
Sales
Est. End State: $92.5M
Sembach
Heidelberg
Kelley
Vogelweh
Patch
Mannheim
2 Aug 06
Panzer
DeCA/EU-CC
Slide 34 of 39 Slides
Wiesbaden Zone Beginning FY06
12 Commissaries
Germany
Gießen
Bad Nauheim
Spangdahlem
Gelnhausen
Bitburg
Büdingen
Wiesbaden
Hanau
Sales
FY05: $74.3M
Babenhausen
McCully
Dexheim
2 Aug 06
Darmstadt
DeCA/EU-CC
Slide 35 of 39 Slides
Wiesbaden Zone End FY09
5 Commissaries
Germany
Gießen
Bad Nauheim
Spangdahlem
Gelnhausen
Bitburg
Büdingen
Wiesbaden
Hanau
Sales
Est. FY09: $37M
Babenhausen
McCully
Dexheim
2 Aug 06
Darmstadt
DeCA/EU-CC
Slide 36 of 39 Slides
Wiesbaden Zone End State
3 Commissaries
Germany
Gießen
Bad Nauheim
Spangdahlem
Gelnhausen
Bitburg
Büdingen
Wiesbaden
Sales
Est. End State: $35.9M
Hanau
Babenhausen
McCully
Dexheim
2 Aug 06
Darmstadt
DeCA/EU-CC
Slide 37 of 39 Slides
In Summary
• Beginning 2006
– 57 commissaries
• By end 2006
– Close Bad Kissingen, Keflavik, Kitzingen,
Giebelstadt & Babenhausen
• Forecast reach end state around 2012
– 35+% fewer stores
• Project end state sales at 70+% current business
2 Aug 06
DeCA/EU-CC
Slide 38 of 39 Slides