Transcript Commissary Operating Board Meeting November 29, 2000

Defense Commissary Agency, Europe
Thomas E. Milks
Director, DeCA Europe
Heidelberg, Germany
29 July 2009
DeCA Europe
1
DeCA Europe
2
A Taste of Yesterday
Brief Evolution of
Commissaries within
Our Overseas Area of
Responsibility
1970
1980
1990
2000
2008
Taking a look back at
where we've been, &
how far we've come
DeCA Europe
3
Beginning of decade
customer savings of 20%
1970's
Start of 1970's commissaries fall under
authority of each installation; most stores operate
40 hours, 5 days a week, Tue thru Sat
Operating
101 commissaries
1972 HASC acknowledges correlation
between commissary operations &
personnel retention, & urges
reorganization of commissary system
Ankara
RAF Alconbury
As decade begins serving over 380K
customers from the Azores & UK
across Europe to Turkey
Depending on demographics & store
size commissaries carry between
1,200 & 6,000 line items
1975 SecDef commissions Bowers
Study (BG Emmett Bowers, USA),
which recommends centralized
agency within each Service; by 1976
each Service begins to run or refine
its own system: AFCOMS, TSA,
NAVRESSO & USMC MWR
Late 1970's larger
volume stores start
opening 6 days a
week, Tue thru Sun
DeCA Europe
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Customer savings
approaches 23%
When Berlin Wall opens
in Nov 89 there are
123 commissaries
1980's
Congress mandates
Surcharge of 5% in 1983
Sigonella
Frankfurt
Servicemembers part of
store operations
New initiative adds Deli/Bakeries
Stores carry between
3,000 & 8,000 line items
By mid-decade more stores start opening 6 days
a week & some 6-day operations go to 7 days
Wiesbaden
1989 Jones
Commission (Lt Gen
Donald Jones, USAF)
recommends
consolidation across
Services
By mid-decade serving over 510K customers
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that now reaches to Egypt & KSA
DeCA Europe
By mid-1990's customer
savings measures 23.4%
Region Buying Offices
1990's
CDC's ramp up to offer 1- to 2-day
deliveries to most stores
Germersheim CDC
Region Stock List
establishes top selling
name brands
based on customer demand
supplemented with other
popular & unique products
Start of decade over
700K potential customers
Deli/Bakery operations
expand & Pasta Bars are
introduced
1994 Central Meat Processing
Plant goes online
Stores now carry 4,500 to
over 9,300 line items
RAF Alconbury
Major construction
denotes new stores &
modernization
projects
Vicenza
As end of decade
approaches operating
65 commissaries
DeCA establishes Your Action Line (YAL) program
"Quality First
- People Always"
DeCA Europe
6
"A New Century of Value & Service"
2000's
2008 overseas customer
savings exceeds 50%
Self-serve salad bars
Fresh Express & other
bagged salads make
their appearance
Over 12K line items to
choose from in largest
volume stores
By 2008 serving over
340K customers
CARTS - new advanced checkout
DeCA Europe
system w/self-checkouts
goes online
Self-Serve
bakeries are
introduced
87
21st Century Leadership
"Leadership is defined by
results, not attributes."
- Peter F. Drucker
DeCA Europe
8
Where We Are Today
•
•
•
•
Strong commitment from business partners
Fully dedicated to supporting SMs & their families
98% to 99% Region-wide average in-stock efficiency
Customer savings over 50% compared to local economy
─ Market basket surveys in UK, Italy & Germany
• High customer satisfaction ratings
• User-friendly web site with consumer & food safety info
• Increased communication thru customer surveys &
"Your Action Line" program
• Support to over 40 American embassies
…and the Embassy Marine Houses
• Engaged in a long, irregular war
Bottom Line: Elevating QoL & customer satisfaction
DeCA Europe
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Diversity in Personnel
• 2,700+ employees
• Ratio of LN to US: 1.3 to 1
• Major employer of military spouses
• High turnover in some locations
• Developing store associates
• Supporting multi-national warriors/customers
• 48 different nationalities represented
DeCA Europe
10
21st Century Leadership
“The only way I know how to
operate is to put the consumer
in the center of what we do."
-Diane Dietz, EVP and CMO, Safeway
DeCA Europe
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Customer Count Comparison
FY09 vs. FY08
1100
Count (000)
1000
900
800
700
600
500
Oct
Nov
Dec
Jan
Feb
Mar
FY09
Apr
May
Jun
Jul
Aug
Sep
FY08
Customer transaction TD: $43.77 in FY09 vs. $42.82 in FY08
DeCA Europe
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Commissaries By Services' Location
• 54.7% of our stores are on Army posts
─ Represents 47.5% of our sales
• 35.7% are on Air Force bases
─ Represents 42.7% in sales
• 9.6% are on Navy installations
─ Represents 9.8% in sales*
*Includes sales to NEXMARTs
DeCA Europe
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Scope of Operations
RANKING
• 54.7% of our stores, the smallest stores,
deliver 20% of sales
20 thru 42
• Our 11 leading volume stores, 26% of total,
deliver 60% of sales
12 thru 19
7 thru 11
3 thru 6
1 thru 2
20%
20%
20%
20%
20%
Note: Commissary store sales only
DeCA Europe
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CCSS '08 vs. '07
SURVEY QUESTIONS
Bakery Quality/Selection
Low Prices/Overall Savings
Well Stocked, Full Shelves
Meat Quality/Selection
Produce Quality/Selection
2007
4.55
4.51
4.57
4.61
4.54
2008 Change
4.64
2.0%
4.58
1.6%
4.64
1.5%
4.68
1.5%
4.60
1.3%
Deli Quality/Selection
Checkout Waiting Time
Other food items (dry goods, frozen foods,
dairy) & variety of selection
Convenient Hours
Entrance/Sales Area/Restroom Cleanliness
Overall Satisfaction (How did we do?)
Store Layout and Time Required to Shop
Attractive Displays/Store Décor
Courteous, Friendly and Helpful Employees
4.59
4.57
4.65
4.62
1.3%
1.1%
4.59
4.63
4.68
4.72
4.63
4.65
4.79
4.64
4.66
4.72
4.77
4.67
4.68
4.81
1.1%
0.6%
0.9%
1.1%
0.9%
0.6%
0.4%
CCSS REGION SCORE (Best in DeCA)
4.61
4.67
1.3%
'09 survey results pending
DeCA Europe
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Europe Military Strength
Summer 2009
USAFE
Ramstein, Germany
SACEUR
Mons, Belgium
UNCLASSIFIED
DCDR
USEUCOM
Stuttgart, Germany
Military Strength
USAREUR
Heidelberg, Germany
USAREUR
USAFE
NAVEUR
MARFOREUR
SOCEUR
USAFRICOM
TOTAL
MARFOREUR
Stuttgart, Germany
SOCEUR
Stuttgart, Germany
45,740
26,960
6,580
140
1,800
1,300
82,520
Plus
Reserve/NG (daily avg) c. 3,800
USAFRICOM
Stuttgart, Germany
DeCA Europe
USNAVEUR
Naples, Italy
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NORWAY, FINLAND,
SWEDEN
Support over 340K customers
in 50+ countries
the AZORES
SENEGAL
LIBERIA
KYRGYZSTAN
ETHIOPIA
SOMALIA
DeCA Europe
INDONESIA
17
Downrange Support
4,000
$ Shipped (000's)
3,500
3,000
FY02
FY03
FY04
FY05
FY06
FY07
FY08
2,500
2,000
1,500
1,000
500
0
AAFES Kuwait
AAFES Iraq
Bottom Line: Supporting troops deployed to Iraq & Kuwait
DeCA Europe
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DeCA Europe
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DeCA Europe
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DeCA Europe
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DeCA Europe
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DeCA Europe
23
21st Century Leadership
“Growth is the only evidence
of Life."
- John Henry Newman
DeCA Europe
24
CY2009
• Negligible year for transformation
─ Army on track to reduce strength by about 1,000
• 1 commissary scheduled to close
─ Neubrücke Commissary 1st Qtr FY10
• St. Mawgan NEXMART closes
DeCA Europe
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Sales & Sales Forecast
FY Sales In $M
500 449.8
467.8
488.8
468.1
473.7
486.6
474.2
400
300
200
100
61
59
56
53
49
42
41
0
FY03
FY04
FY05
FY sales
FY06
FY07
FY08
*FY09
Forecast
# Stores at end of each FY
*Initial forecast decrease due to ongoing unit deployments
& to lesser extent continued Army transformation
DeCA Europe
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FYTD 2009 Sales/Transactions
July 2009 ($K)
Sales
*FY 2009
FY 2008
Diff
%
East
$2,268,321.1
$2,168,677.9
$99,643.2
4.59%
Europe
$368,260.0
$351,847.0
$16,413.0
4.66%
West
$2,119,077.9
$2,052,320.4
$66,757.5
3.25%
Total
$4,755,659.0
$4,572,845.3
$182,813.7
4.00%
Transactions
*FY 2009
FY 2008
Diff
%
East
32,735,004
32,128,970
606,034
1.89%
Europe
8,941,364
8,637,365
303,999
3.52%
West
34,045,243
33,652,961
392,282
1.17%
Total
75,721,611
74,419,296
1,302,315
1.75%
*Sales/Transactions through July 19
DeCA Europe
27
Monthly Sales/Transactions
July 2009 ($K)
Sales
*FY 2009
FY 2008
Diff
%
East
$147,894.7
$149,680.7
-$1,786.0
-1.19%
Europe
$23,687.9
$22,999.7
$688.2
2.99%
West
$137,389.1
$139,673.5
-$2,284.4
-1.64%
$308,971.7
$312,353.9
-$3,382.2
-1.08%
Transactions
*FY 2009
FY 2008
Diff
%
East
2,152,405
2,164,674
-12,269
-0.57%
Europe
577,746
552,513
25,233
4.57%
West
2,203,193
2,228,277
-25,084
-1.13%
4,933,344
4,945,464
-12,120
-0.25%
Total
Total
*Sales/Transactions through July 19
DeCA Europe
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