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Mr. Terry L. BatenhorstArea Director, West
San Antonio 2015
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Original plan
• $322M Reduction in FY 2016
• $1B in FY 2017
Alternate Plan
$183 M Reduction in FY2016
Cuts in days, hours, etc.
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Budget Uncertainty
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National Defense Authorization Act
• Newest plan, overhaul the commissary system?
• Sec of Defense come up with a plan by 1 March to make commissaries and exchanges Budget-Neutral by 1 Oct 2018
– Exploit synergies to optimize operations.– Privatizing operations in whole or in part.– Engagement of major Commercial Grocery
retailers for discount savings on Groceries.– Closing stores in close proximity to other
facilities or where commercial alternatives are available.
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National Defense Authorization Act
Benchmarks
1. High level of Customer Service
2. Provide high quality products
3. Sustainment of savings.
Pilot program test for 5-10 years.
* Must meet the Benchmarks and be Budget-Neutral.
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Other Issues
• Employee conversion to NAF• Private label• Variable pricing• Headquarters cuts (25%)• Delayering the organization
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PerformanceWe’re PROUD. We’re COMMITTED. We’re MORE.
DeCA Sales ComparisonFY 2015
Area Sales % Change $ Difference
WEST AREA $1,395,669,070 - 2.45% - $35,117,678
PACIFIC AREA $1,036,181,174 - 1.66% - $17,536,470
EAST AREA $1,426,549,287 - 1.58% - $22,950,982
CENTRAL AREA $1,186,963,906 - 0.88% - $10,515,376
EUROPE AREA $397,716,043 - 6.28% - $26,660,664
DeCA OVERALL $5,443,079,481 - 2.03% - $112,781,170
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Area Sales per Trans
FY 2015Sales per Trans
FY 2014Sales per Trans
FY 2013
WEST $60.53 $61.12 $61.34
PACIFIC $57.96 $58.29 $58.38
EAST $70.28 $71.12 $70.69
CENTRAL $67.51 $67.76 $67.68
EUROPE $40.68 $41.95 $40.83
Sales per TransactionFY 2015 vs. FY 2014 vs. FY 2013
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Zone Sales % Change $ Difference
CENTRAL TEXAS $212,060,769 - 3.05% - $6,675,277
OKLAHOMA-NM $263,675,670 - 3.88% - $10,640,395
FRONT RANGE $295,150,576 - 2.47% - $7,475,018
NORTHERN CA $149,982,748 - 2.36% - $3,617,722
SOUTHERN CA $271,441,680 - 1.92% - $5,311,779
CENTRAL CA $121,384,842 - 1.20% - $1,469,653
CAN-MEX $231,955,533 - 1.51% - $3,545,557
TOTAL $1,545,651,818 - 2.44% - $38,735,401
West Area Sales by ZoneFY 2015
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Store Name FY 15 Sales % Change $ Difference
CORPUS CHRISTI $8,681,662 1.91% $162,432
DYESS $10,320,768 - 1.02% - $106,572
FORT HOOD I $37,098,104 - 0.42% - $156,817
FORT HOOD II $20,956,636 - 4.21% - $920,603
FORT SAM HOUSTON $40,548,937 - 2.56% - $1,066,899
GOODFELLOW $9,630,382 0.21% $20,379
KINGSVILLE $652,388 - 3.09% - $20,815
LACKLAND $36,930,735 - 10.96% - $4,547,515
LAUGHLIN $3,623,229 9.41% $311,728
RANDOLPH $43,617,929 - 0.80% - $350,595
West Area Sales – Zone 6FY 2015
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DeCA WideCombined Monthly Sales Comparison
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Lackland, Randolph, Fort Sam,
Fort Hood 1 & 2
12Combined sales from the 5 stores
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The Texas Challenge
Active Duty & Dependents
Reservist, Sponsors & Dependents
Retirees, Sponsors & Dependents
TOTAL 2011-2015
3 Year Trend 2013-2015
FY 11 74,536 31,174 76,176FY 15 66,438 34,797 78,034 0.6%
Fort Sam -2,946 +3,623 +1,858 +2,617 +1,036
FY 11 65,190 27,364 46,586 2.9%
FY 15 59,620 30,910 50,588 +3,965
Lackland -5,570 +3,546 +4,002 +1,978
FY 11 45,746 15,435 58,041 3.2%
FY 15 43,833 19,342 62,405 +3,887
Randolph -1,913 +3,907 +4,364 +6,358
San Antonio Combined -10,429 +11,076 +10,224 +10,871 +8,888
FY 11 115,730 19,122 76,176
FY 15 84,990 7,951 78,034 -17.40%
Fort Hood -30,740 -11,171 +1,858 -40,053 -28,909
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We’re PROUD. We’re COMMITTED. We’re MORE.
Goal for FY 20163% Sales Increase
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DeCA Wide Sales History
Year Sales Trend
2011 $5,873,720,210
2012 $6.008,239,880 Record Year
2013 $5,797,657,15
2014 $5,555,860,651
2015 $5,443,079,481
DATA SOURCE BUSINESS UNIT EST FY 2015 SALES FY 2016 GOAL $ CHANGE % CHANGENielsen Specialty Food $363.99 $374.65 $10.66 2.93%Nielsen Pet & Household $265.25 $272.48 $7.23 2.73%Nielsen Paper/Laundry $306.36 $314.62 $8.26 2.70%Nielsen Frozen $447.30 $460.04 $12.74 2.85%Nielsen Food $529.11 $542.06 $12.95 2.45%Nielsen Dairy $526.12 $542.06 $15.94 3.03%Nielsen Bread /Snacks $526.31 $539.22 $12.90 2.45%Nielsen Beverages $431.28 $446.61 $15.33 3.55%Nielsen Beauty Care $197.42 $203.09 $5.67 2.87%Nielsen Baby & Health Care $207.53 $215.59 $8.06 3.89%Business Objects Deli-Bakery-Seafood $214.36 $222.03 $7.66 3.57%Business Objects Produce $498.36 $513.31 $14.95 3.00%Business Objects Meat - Fresh and Prepack $832.39 $860.41 $28.01 3.37%
$5,345.79 $5,506.17 $160.37 3.00%
Other Front End Sales (Gift Cards, Bottle Deposits, Non-standard UPC items etc.) $92.87 $95.65 $2.79 3.00%
Total Front End Sales $5,438.66 $5,601.82 $163.16 3.00%
AIMS other sales (Nexmarts, Downrange, CG Exchanges etc.) $66.90 $68.91 $2.01 3.00%
AIMS Sales $5,505.56 $5,670.73 $165.17 3.00%
Total Nielsen and Perishable BO Sales
FY 2016 Sales Goals ($M)
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Director’s Focus Areas
• Outstanding Customer Service
• Pricing (to include promotions)
• Stock Availability/Improved In-Stock Positions
• Cleanliness of Stores
1 2 3 4 5+$0
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
Net SalesHH Size
2014 2015
75+
70-74
65-69
61-64
55-60
45-54
35-44
31-34
25-30
22-24
Under 22
$0 $200,000,000 $400,000,000 $600,000,000
Net SalesAge
2014 2015
3.1%
4.5%
11.8%8.5%
18.0%
17.6%9.7%
5.8%
7.3%
5.2%
8.4%
Source: DeCA Retail Sales
15.8%
39.7%
16.5%
12.7%
15.1%
May not add to 100% due to rounding
February – July Comparison
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Source: DeCA Retail Sales
February – July 2015
<5
<10<15
<20
41%
60%
76%
83%
Scott AFB Pearl Harbor
<5
<10<15
<20
62%
56%
77%
31%<573%
5-9.966%
10-14.9
57%15-19.9
46%
Market Penetration
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HH Size Scott AFB Pearl Harbor
1 72 95
2 108 88
3 104 112
4 105 111
5+ 98 115
Age Group Scott AFB Pearl HarborUnder 22 50 96
22-24 43 12625-30 50 13931-34 65 13535-44 103 11845-54 151 8755-60 134 7361-64 134 7265-69 113 7170-74 93 7275+ 74 78
Demographic Index
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Net Sales Index by Age
CATEGORY DESCRIPTIONUnder
22 22-24 25-30 31-34 35-44 45-54 55-60 61-64 65-69 70-74 75+Grand Total
BREAKFAST BARS 69 65 77 106 160 204 199 186 142 112 85 142COUGH COLD SINUS FLU ALLERGY VARIOUS 68 56 82 95 148 190 155 146 126 98 72 129DOG FOOD DRY 76 83 84 99 143 163 135 125 99 79 49 119DOG SNACKS 69 87 63 89 139 162 134 116 94 72 56 111ISOTONIC 55 52 75 84 138 146 124 103 92 99 45 106SODAS ALL FLAVORS 74 62 68 87 138 182 160 159 126 92 74 127COFFEE CANNED REGULAR 89 66 58 78 137 170 131 138 114 98 77 115FOOD K TO O 1 71 75 80 91 137 169 151 142 121 89 78 123COFFEE TEA COCOA K CUPS 99 64 69 96 137 156 153 136 120 75 68 121CEREAL FAMILY AND TOPPERS 60 50 63 83 133 165 140 138 111 99 74 113VITAMIN OR SUPPLEMENT BROADLINE 77 59 65 84 132 182 174 166 124 101 72 126MEXICAN 75 64 65 91 131 168 147 135 115 97 69 117MILK FLUID 59 52 60 79 130 173 143 135 118 96 69 109YOGURT LIGHT REDUCED FAT CHILLED 62 45 56 83 129 165 138 148 98 71 60 109CHEESE SHREDDED CHLLL 63 62 64 80 127 169 147 131 117 97 71 115CRACKERS CAN CHEESE SPREAD 63 54 70 90 126 166 143 137 118 98 77 115PIZZA 65 57 60 76 124 159 135 119 107 87 72 107BAKERY ITEMS 51 50 59 72 124 156 124 127 101 77 57 99CEREAL ADULT 55 49 57 82 122 155 126 138 118 95 67 106TISSUE BATH 56 53 59 79 121 163 140 133 107 90 71 111
February – July 2015
Source: DeCA Retail Sales
Scott AFB – Category Index by Age
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February – July 2015
Source: DeCA Retail Sales
CATEGORY DESCRIPTION Under 22 22-24 25-30 31-34 35-44 45-54 55-60 61-64 65-69 70-74 75+ Grand Total
RICE PLAIN DRY 171 196 241 237 213 167 144 134 121 145 192 181JUICE BLENDS 117 153 157 151 119 73 59 60 59 58 61 92
TUNA 146 182 184 196 179 121 105 136 114 79 81 139COFFEE TEA COCOA K
CUPS 88 130 133 120 90 57 42 32 29 24 32 62
CEREAL ADULT 119 160 183 170 137 84 60 58 55 54 47 93CEREAL FAMILY AND
TOPPERS 113 142 164 149 118 72 50 50 50 50 48 90
CEREAL CHILDREN 107 154 165 158 131 80 58 61 59 61 74 115BABY FORMULAS BABY
NEED 117 108 144 183 184 118 100 111 111 145 106 145
NATURAL ORGANIC 121 188 194 202 218 123 71 110 130 105 118 178SODAS ALL FLAVORS 87 133 128 123 92 56 43 37 34 32 38 68
WATER 134 154 177 169 156 111 95 95 85 83 94 125COOKIES 88 135 151 150 124 70 51 49 49 39 37 79
CRACKERS CAN CHEESE SPREAD 87 129 136 128 105 66 53 56 55 58 58 85
NUTS CAN OR PK 144 180 190 182 148 95 83 82 82 70 80 108CHIPS TORTILLA 125 178 189 177 141 89 62 61 64 66 65 120CHIPS POTATO 103 141 159 157 134 86 62 61 66 66 69 101
DETERGENTS LAUNDRY LIQUID 98 144 162 155 125 78 66 52 54 53 54 88
DOG FOOD DRY 73 69 72 74 63 43 36 38 41 35 44 52TOWELS PAPER OR CLOTH
OR WIPE 120 176 183 170 136 82 62 55 56 57 57 93
TISSUE BATH 103 148 159 143 114 74 62 53 54 55 60 84
Pearl Harbor – Category Index by Age
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Facilities ProjectsWe’re PROUD. We’re COMMITTED. We’re MORE.
Store Projected Start / Completion Date
Miramar October 2015
Edwards TBD
El Centro TBD
Fort Huachuca TBD
Fort Worth TBD
Mountain Home TBD
Offutt TBD
Vandenberg TBD
Facilities Projects – R22 Replacement
FY 2015/16
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Store Type Projected Start / Completion Date
Lackland AFB Renovations/Refrig replace November 2015
China Lake Pre-Design FY 2016
Los Angeles Pre-Design FY 2016
Port Hueneme Planning FY 2016
Altus Planning FY 2017
F. E. Warren Planning FY 2017
Fort Irwin Planning FY 2017
Facilities ProjectsFY 2015/16/17
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