AAFES MILESTONES
Milestones features the hightlights in AAFES history along with a few photos from the era mentioned.
 

o 1800s
o 1910s
o 1920s
o 1930s
o 1940s
o 1950s
o 1960s
o 1970s
o 1980s
o 1990s
o 2000s
Download: "A Brief History"

1800s back to top

1895: The War Department issued General Order number 46 directing post commanders to establish an exchange at every post, where practicable.

1910s back to top

1917: The first real test of the Post Exchange system came when the United States entered World War I. The American Expeditionary Forces landed in France. Exchanges were unable to meet the needs of the greatly expanded Army. Civilian welfare agencies would provide canteen services for American troops during World War I.

1918: End of World War I with the Armistice. After the war, the secretary of war sent to Europe a committee headed by Raymond Fosdick. The Fosdick Committee was to report on the morale conditions of the American Expeditionary Forces and this was the first time that the morale of the Army overseas would be studied.

1919: The Fosdick Committee provided the secretary of War a report of its study of the American Expeditionary Forces in France. It recommended that the Army provide its own system for furnishing morale and canteen activities to the troops.

The first documented use of term "PX" was found in the book of exchange council meetings (1910-1920) at Fort McKinley, Philippines. Exchanges were usually referred to as canteens.

1920s back to top

1921: The first centralization of post exchanges in Hawaii took place at Schofield Barracks. The post exchange was organized and replaced all regimental and associated activities in the various organizations.

1930s back to top

1933: HASC issued report of its 1932 hearings, the first in-depth congressional inquiry into the non-appropriated fund system. Congress placed the first restrictions on post exchange operations and required the first official justification for military exchanges.

1939: Lessons learned from our experience in World War I, providing service to the largest U.S. force deployed to that date, led to increased developments and improvements.

1940s back to top

1941: The Army Exchange Service (AES) was nearly six months old and undergoing organizational changes when the U.S. officially entered WW II in December. Although the QM had been to war before, the AES was going to its first war and within several years had extended services to most locations wherever U.S. troops were deployed. Serving those who serve became the mission of the AES as military operations expanded in Europe, the Pacific and back home. "We go where you go" became a reality.

1942: As the number of Soldiers fighting in WW II increased, the immensity of supplying Soldiers worldwide became the most immediate challenge. At some locations, exchanges were restricted to the sale of articles of convenience and necessity. Rationing was common. PX operations during WW II were varied and spread across the globe.

The AES issued its first catalog, generating 80,000 orders from American troops stationed overseas. Some overseas exchange systems developed their own gift catalogs, featuring merchandise indigenous to the area.

Following the end of hostilities in Europe, the AES stayed behind providing continual support to the occupation forces. Post WW II operations in war-ravaged Europe saw an increase in AES operations. Nearly 80 new exchanges were required to supply the immediate needs of the Soldiers and their dependents. For most Soldiers serving overseas, the AES represented a second family because the exchange personnel were friendly and the items carried in the PX reminded Soldiers of home.

1950s back to top

1950: It was four years after the Korean Conflict began that regional offices were introduced in the U.S. and six years after that before worldwide fiscal integration would be effected. The reorganized Army and Air Force Exchange Service sought to improve customer satisfaction in Korea through Vietnam. Rapid exchange installations, merchandise expansion and mobile exchanges were some of the goals achieved. As troop populations shifted, so did the exchanges. Efforts to nourish the Soldier’s essential needs became the exchanges primary objective. AAFES strived to maintain the welfare and the morale of the troops. Although at war, the PX would offer a little bit of home to war-weary Soldiers and Airmen.

1952: Mobile exchanges began operating extensively in Korea when 18 converted buses were as-signed to the forward areas for the 8th Army. The .rst buses were used in "Operation Reindeer," a program that provided gift items to troops for holiday shopping.

1954: AFEX began operations in Spain, Netherlands and Italy.

1960s back to top

1965: Exchange operations were transferred from the Navy ex-changes. This was the official beginning of the Vietnam Regional Exchange. The principle of the mobile units from the Korean conflict was developed into Tactical Field Exchanges (TFE) in Vietnam. TFEs were operated by the military in areas where there were no AAFES operations. In 1972, the Pacific Exchange System merged into AAFES. The Navy also desired that AAFES take over Class VI operations, including club, mess and retail sales.

The exchanges were faced with the problem of setting up and operating food outlets to serve the troops with essentially the same American foods that could be obtained at home. Training local nationals with food preparation and sanitation was also complicated with the technical problems of storage and refrigerated food transportation because of the hot, Vietnamese climate.

1969: A one-year test began on "integrated management" for CONUS exchanges at Sixth Army posts and Strategic Air Command bases. Under this concept, AAFES (through the Area Support Centers) was responsible for operating and managing exchanges, instead of the commanders. The test was directed by the vice chiefs of the Army and the Air Force.

1970s back to top

1970: Based on the favorable results of the one-year test the Chief, AAFES, assumed operational control and responsibility for all Army and Air Force exchanges in the continental United States. This was the first step of the integrated management of exchanges worldwide under AAFES.

1972: With the announcement of a major escalation in the rate of troop withdrawals in Vietnam, immediate action was taken to stop the flow of goods and led to the "Deactivation of Vietnam Regional Exchange." This specified actions to be taken upon cease-.re and withdrawal of AAFES associates and services.

1973: The Vietnam Regional Exchange entered the area of Post Redeployment. From this time until 1975, operations were carried out somewhat routinely.

1975: It was important at this time that the exchange not contribute to the panic that was seizing the Vietnamese. However, behind the scenes, merchandise and equipment were being shipped out of the country using every available means. But up until the final withdrawal day, the exchange provided support. The final associates opened the exchange on the morning of April 28th and were hastily evacuated April 29th.

1980s back to top

1981: After the inauguration of President Reagan, 52 hostages held in Iran were freed. AAFES was involved in preparing for their return; hanging "Welcome Home" banners and getting the retail store and food court in Wiesbaden, Germany, ready for the their visit. AAFES associates prepared for everything, knowing that it was in their stores that the hostages would receive their first haircut, first hamburger, or first cigarette since their release after 444 days of captivity.

1983: AAFES’ response to Operation Urgent Fury on the island of Grenada would be the first of its kind since the withdrawal from Southeast Asia.

1989: The AAFES family supported Operation Just Cause in Panama, which served as a rehearsal for the challenges ahead in the Middle East.

1990s back to top

1990: Operation Desert Storm became the largest deployment of U.S. Forces since WW II. AAFES prepared to go to war as a worldwide command, building up its support virtually from scratch. Operation Desert Shield would be the litmus test for the efficiency of a centralized, worldwide exchange system for the Army and Air Force.

Perhaps the most significant AAFES achievement during the early Desert Shield was setting up an in-country distribution center. Once established, the Saudi Distribution Center worked virtually non-stop supporting both direct operational and Imprest fund site exchanges.

1991: AAFES associates experienced their first bomb attack on Jan. 16. The next day, Operation Desert Shield became Desert Storm. Hostilities ceased Feb. 27, and Army Central Command re-quested a PX be established within Kuwait City. This became an extremely important morale booster to Soldiers who were fighting only the heat and loneliness. AAFES operated the only store in the whole country of Kuwait. There was absolutely nothing else.

AAFES has also routinely provided support and services to Reserve and National Guard units deployed and providing humanitarian assistance, such as road building and well drilling to Central American countries such as El Salvador and Honduras.

In addition, AAFES has provided support during national emergencies, such as hurricanes, earthquakes, tornadoes and forest fires.

Mt. Pinatubo erupted for the first time in 600 years in the Philippines, destroying Clark AB. AAFES provided evacuation support at U.S. points of entry and in Guam when 18,000 evacuees arrived at Andersen AFB. In Okinawa, AAFES set up tactical field exchanges in tents at the initial evacuee reception point for clearing customs and immigration. Total damages suffered by AAFES were more than $13 million.

1992: AAFES provided support in Operations Restore Hope and Continued Hope in Mogadishu, Somalia.

1993: AAFES deployed to Skopje, Macedonia, in support of Operation Able Sentry, a U.N. sponsored operation to keep Bosnia-Herzegovina conflict from spreading.

1994: AAFES-Europe set up a tactical field exchange in Entebbe, Uganda to support military personnel assisting with the influx of refugees.

AAFES and DeCA team up to support over 20,000 American troops deployed to Haiti during Operation Uphold Democracy.

1995: AAFES opened two exchanges in Hungary followed by a unit to the Sava River to support troops with the peace initiative in Bosnia. AAFES operated more than 20 exchange facilities in Croatia, Hungary, Bosnia and Herzegovina during Operation Joint Endeavor.

1996: AAFES prepared to support 20,000 U.S. troops sent to Bosnia. AAFES would operate three primary locations and an intermediate support base located in the vicinity of Kaposvar, Hungary; a logistics support area in the vicinity of Zagreb, Croatia, and Tuzla, Bosnia. Eight exchanges were created at Tuzla Main (Eagle Base), Tuzla West (Comanche), Tuzla East (Steel Castle), Lukavac, Kime, Gradacac (Gentry), Bedrock and Harmon.

Through snow, icy waters and mud, AAFES transformed in record time, the desolate sites in Bosnia-Herzegovina into a series of retail sites that continue to serve the Soldier and the Airman.

1996: The AAFES Home Page was developed and implemented. Through the AAFES Website, authorized exchange customers could .nd information about AAFES and military installations in their area or do their shopping at the Exchange Online Store, open to active duty, retirees, National Guard/Reserve and family members of all branches of service. The AAFES intranet Website created a base for corporate communication and data access needs.

1998: Reacting to renewed threats to Kuwait by the Iraqi government, AAFES was called into action to support troops in Saudi and Kuwait taking part in Operation Desert Thunder.

AAFES open field exchanges in Central America to serve U.S. forces sent to El Salvador, Nicaragua, Honduras and Guatemala in an effort to help families devastated by Hurricane Mitch.

1999: A veteran team of AAFES associates with previous contingency experience arrived at the Tirana (Albania) airfield to set up field exchanges in support of Operation Novel Anvil.

2000s back to top

2000: AAFES began managing proprietary credit card services for AAFES, NEXCOM, the Marine Corps and Coast Guard exchange systems. This consolidated the AAFES DPP program and NEXCOM’s NEXCARD program into a single All-Services Private Label Credit program know to its 1.8 million users as the Military STAR Card. In addition to the All-Service Exchange Catalog, AAFES is the operator of the All-Services Exchange Online Store.

2001: After the tragic events of Sept. 11, 2001, when terrorists attacked the United States, AAFES brought much needed relief to rescue operations at the Pentagon and the World Trade Center. In addition, associates continued their tradition of support following close behind all in an effort to ensure deployed troops were provided a piece of home away from home. AAFES set up stores and services in Afghanistan, Pakistan, Kyrgyzstan, Uzbekistan, and Djibouti; in addition to the Middle Eastern locations like Oman, Bahrain, Qatar, UAE and Kuwait. By December 2002, AAFES had 32 stores serving troops engaged in Operation Enduring Freedom.

2002: AAFES Tactical Field Exchanges supported more than 7,000 key personnel at the 2002 Winter Olympics in Salt Lake City, Utah.

Exchange Select brand replaces all AAFES brand and American Mercantile items found at all AAFES, NEXCOM, MCCS and CGES retail stores.

AAFES swept the Popeyes International Division Silver and Gold Plate awards, winning al three Silver Plates and the only International Gold Plate.

Blimpie Sub & Salads, Inc., recognized AAFES with its 2002 Institutional Partner of the Year Award.

AAFES responded to an urgent request by Fifth Army Logistics to deploy its services to support the more than 1,200 soldiers and firefighters sent to suppress wild land fires in the northwest U.S.

2003: AAFES faced its greatest challenge when the United States decided to face down Saddam Hussein and his Iraqi regime. As tens of thousands of troops poured into the Middle East, AAFES moved heaven and earth to be there for them, working around the clock to open new stores in remote locations where there was only sand as far as the eye could see. Energetic AAFES associates built stores in trailers, tents and prefabricated facilities, stocked and manned them at record pace. By the time coalition forces crossed into Iraq, AAFES had 23 stores in the staging areas. But AAFES didn’t stop there. AAFES followed the troops into Iraq, opening its first store at Talil Air Base on April 9...before Baghdad fell.

Americans wishing to show their support to U.S. Army Soldiers serving in OIF/OEF and their families could make contributions of "Gifts for the Homefront" gift certificates to a service member or family member.

Burger King awarded AAFES special recognition for outstanding contributions to the Burger King business. The award acknowledged AAFES’ commitment to providing quality service to Soldiers and Airmen and their families around the world.

Just in time for the holiday season, AAFES released its Gift Card, providing a convenience to customers and ensuring that sales did not leave AAFES stores.

Best of the Pacific magazine named the AAFES Web site as the best in retail/services.

2004: The National Retail Federation awarded AAFES the American Spirit Award to recognize AAFES' exceptional achievement in supporting our troops in OIF/OEF. Past recipients of the prestigious award were Presidents Jimmy Carter, George Herbert Walker Bush and Senator Bob Dole.

Oser Communications group, publisher of Consumer Electronics Daily News, named AAFES one of the Consumer Electronics Daily News 2004 Consumer Electronics Retailers of the Year.

Popeyes awarded AAFES with the International Franchise of the Year award.

AAFES was named one of the Top 10 companies for Asian-Americans by Diversity Inc. Magazine.

AAFES opened the first indoor movie theater for troops in Iraq. AAFES provided the sound, projection and the food as a way of bringing "a taste of home" to Soldiers serving in Balad, Iraq.

The AAFES SD Linens and Domestics team was awarded the International Service Award by the Home Fashion Products Association.

AAFES was awarded the Meritorious Unit Commendation by the Secretary of the Army for its outstanding support of U.S. service members serving in Operation Iraqi Freedom.

2005: Oser Communications Group (OCG), publisher of Consumer Electronics Daily News, named AAFES as 2005’s Consumer Electronics Daily News World Retailer of the Year. Having won Consumer Electronics Retailer of the Year awards in 2004, 2003 and 2002, this year marks the fourth consecutive year AAFES has been formally recognized by Consumer Electronics Daily News

AAFES opened a new Bazaar at Camp Liberty on Jan. 12 to provide more shopping for Soldiers and to help Iraq take another step forward in the rebuilding of the country.

Army & Air Force Exchange Service (AAFES) customers in Korea have recently received more Name Brand Fast Food choices. Two Subway sandwich shops opened to the delight of customers who enjoy to “eat fresh.” The first opened Feb. 3 in the Osan Air Base Shopping Mall and another followed the next day at the Camp Carroll Food Court.

Troops serving in Operations Enduring and Iraqi Freedom have access to communication tools that most veterans, only 10 years ago, could have only dreamed about. In fact, today’s deployed service members not only have communication capabilities, but they have choices regarding how they choose to communicate. A limited number of tax-subsidized minutes are made available to troops for “official” morale (free) phone calls each month, the internet offers instant chat and email and the Army & Air Force Exchange Service (AAFES) has phone centers where troops can make as many “unofficial” (paid) calls as they desire.

Sarah Latona became the first Army and Air Force Exchange Service associate in its 109-year history to receive the Defense of Freedom Medal. The civilian equivalent of the military’s Purple Heart, the Defense of Freedom Medal honors civilian employees of the Department of Defense injured or killed in the line of duty. Sarah suffered multiple injuries during an attack on a convoy she was driving in while deployed with AAFES to Iraq.

AAFES continued to expand name brand fast food in the OEF/OIF theater with the inclusion of Taco Bell, Cinnabon, Pizza Inn, Dairy Queen, Orange Julius and Popeyes, along with opening the first NBFF (a Burger King) in Djibouti, Africa.

Marvel Comics gave out 1 million copies of a special edition “New Avengers” comic book to troops and their families. The comic was a free gift and tribute to the military. As a thanks to AAFES, for sponsoring the publishing of the comic book, the AAFES logo was discreetly inserted into select art panels.

AAFES’ first Taco Bell opened in Iraq on July 10. More than 475 troops were served on the first day, consuming more than 3,000 tacos and 641 burritos.

AAFES won multiple awards for video productions. The awards noted are: Telly’s Silver Award in Corporate Image for AAFES “Unsung Heroes;” Telly’s Finalist Award in Copywriting for AAFES “Unsung Heroes, the Videographer Awards of Excellence for AAFES “Unsung Heroes” The Videographer Award of Distinction for ”Robin Hood Sandwiches Training;” Aegis Winner Award for “Robin Hood sandwiches Training” Aegis Winner Award for AAFES "Unsung Heroes,’ and Aegis Finalist award for “Value Fact." Founded in 1979, the Telly awards are the premier awards honoring outstanding local, regional and cable TV commercials and programs, as well as the finest video and film productions.

On July 23, PXBX facilities everywhere honored AAFES’ 110th anniversary with a wide variety of sales, promotions and sweepstakes.

The summer and fall of 2005 saw a record number of hurricanes hit the coasts. AAFES provided aid and comfort to those military members, family members, retirees and associates caught in their paths by setting up TFEs staffed with volunteers in and around the areas, raising money for associates, waving interest and payments for Military Star Card customers from those areas and establishing procedures for authorized customers to donate gift cards that could be used at any AAFES facility by victims of the hurricanes.

 

 

 

 

 

2006: To help accommodate more military fleet customers and to speed up fueling transactions, the Army & Air Force Exchange Service began accepting Voyager credit cards for payment at its gasoline pumps. Previously, Voyager credit cards were only authorized when military customers physically went into AAFES facilities to pay because of software limitations that didn’t allow verification of user information at the pump. Roughly 260 AAFES shoppettes now accept Voyager for payment at the pump.

The Navy Exchange Service Command (NEXCOM) and AAFES have created a new position within their organizations, the Cooperative Exchange Liaison (CEL). The new position is a billet exchange project that involves assigning an individual to work with the other Commander’s headquarters executive staff.

The Fort Belvoir community witnessed “history in the making” when AAFES celebrated the grand opening of the Fort Belvoir Town Center, the first of its kind in the Army. The Town Center incorporates residential housing and 11 AAFES retail shops in a main street-type atmosphere. The Town Center includes a Starbucks coffee shop, RAC Military Rentals, and a Barber Shop. There are also 25 residential units and a Welcome Center for Soldiers and their families. The opening of the retail shops represents the completion of the town center project.

True to its motto of “We Go Where You Go,” the Army & Air Force Exchange Service (AAFES) has mobilized its next-generation Tactical Field Exchange (TFE) in support of some 550 active-duty Soldiers helping control wildfires that have burned across Washington’s Okanogan and Wenatchee national forests. The mobile equivalent of a stationary PX/BX found on an Army or Air Force installation, TFEs are 40 to 53 foot trailers that have been converted into mobile retail stores to support contingency deployments. Military operations in Somalia, Haiti, Bosnia and Kosovo validated the need for this quality of life support to deployed service.

To date, more than 1,700 AAFES associates have deployed to dangerous places around the world. Those associates who deploy are true heroes, dedicated to proudly "serve those who serve".

2007: Citing customer demand, AAFES decided to calculate its gasoline prices each week starting in February, 2007.

AAFES is taking significant steps toward reducing the military’s environmental footprint. In addition to a new real estate Energy Management team, complete with an Energy Management consultant, AAFES recently became a 2007 Energy Star partner and a member of the U.S. Green Building Council. AAFES’ reinvigorated energy program is focused on reducing energy consumption through associate training and education, the building of sustainable facilities and systematic optimization of existing operations to ensure efficient and effective operation. The objectives of AAFES’ Energy Program include the elimination of waste in existing facilities, increased energy efficiency in new construction and renovation as well as a 30 percent reduction in energy consumption by 2015.

Authorized exchange shoppers looking for high quality, name brand items at great prices need look no further than the 2007 Name Brand Supplement. Scheduled for release on Jan. 9, 2007, the first-ever 30-page catalog is filled with top-brand electronics, sporting goods, giftware, toys and much more. Another first for the new catalog will be the inclusion of a promotional code good for a one-time 10 percent savings off an entire order.

The latest series of AAFES’ OIF/OEF POG’s includes a different look. Three of the standard set have been designed and produced as lenticulars. A lenticular is a printed image that shows depth or motion as your viewing angle changes. The result is a dramatic, eye catching piece that captures the attention of the person viewing the product.

2008: Marked five years of service to the troops serving in Operation Iraqi Freedom. From merchandise sold out of the back of a Toyota Landcruiser in 2003, AAFES in 2008 operates56 BX/PXs, 19 unit-run exchanges, 98 name-brand restaurant and hundreds of other services throughout Iraq. About 450 AAFES associates are deployed in Operation Iraqi Freedom and Operation Enduring Freedom.

As of March 31, nearly 157,000 caring people had ordered more than 270,000 Military Exchange Prepaid Phone cards for Soldiers, Airmen, National Guard members and Reservist serving in the Middle East fighting the Global War on Terror. The “Help our Troops Call Home” program debuted four years ago.

A team of more than 200 AAFES associates finished implementing the $177 Project Retek’s Oracle Retail, the largest information technology project in the company’s 113-year history. The sophisticated technology, which also is used by many of the country’s retail giants, will help AAFES tap the retail industry’s best merchandising, allocation, replenishment, forecasting, pricing and inventory management practices. AAFES leaders estimate that because of Oracle Retail, earnings will increase by $84.6 million by 2012.

In May, AAFES Commander Brig. Gen. Keith Thurgood presented Bety Desil, a forewoman for Einstein’s Bagels at Fort Hood, Texas, with the federal government’s Defense of Freedom award—the civilian equivalent of the Purple Heart—for being injured in the line of duty while she was deployed to Iraq. In 2007, mortars struck Camp Cuervo in Iraq, where Betty was working in the PX. The explosions sent dozens of pieces of shrapnel deep into her foot. In October 2007, she returned to work after recovering from her injuries. She is the fourth AAFES associated presented with the metal, all for service in Iraq.

AAFES entered 2008 with firm sustainability goals of reducing energy consumption by 3 percent a year, reducing waste, cutting consumption of petroleum products 10 percent by 2015, increasing the amount of reusable plastic bags, and increasing recycled office paper by 15 percent. AAFES also continued adding to its already extensive line of Energy Star refrigerators, washers and dryers, DVD players and other products.

AAFES’ technology investments and streamlined decision-making are enabling the company to match wits with its most ferocious competitors, according to a major business publication. In July, Retailing Today’s 2008 Annual Top 150 Annual Industry Report ranked AAFES as 28th on the list of top 150 retailers. The report includes profiles of AAFES and 11 other “most venerable, highest-volume retailers” whose “influence on retailing cannot be overstated.” According to Mike Troy, who wrote the AAFES profile, “the organization’s philosophy about how to manage its business also has evolved in a way that puts it on an equal footing with best-in-class retailers against whom it competes.”

AAFES took to the road again to join the Defense Commissary Agency, DeCA, in 40 joint sales promotions at National Guard and Reserve basis around the continental United States and Hawaii. Many of the Guard members, Reservists and their families live great distances from brick-and-mortar exchanges. About 25 percent of the 11.5 million Armed Forces members eligible to shop in AAFES changes come from the Guard and Reserves. The promotions began a push directed by AAFES Commander Brig. Gen. Keith Thurgood—himself a member of the U.S. Army Reserves—to reach out to Guard and Reserve members more aggressively. Direct Marketing leaders are publicizing AAFES’ Web site, www.AAFES.com, in ways to alert the Guard members and Reserves that they can still shop AAFES from the comfort of their homes.

Three AAFES catalogs were named finalists is the prestigious 2008 MultiChannel Merchant Awards competition. The Baby Book 2007, Outdoor Living 2007 and Home Décor Summer 2007 finished as finalists from among 180 entrants in the competition. The Web site, www.aafes.com, finished as a finalist in the international Web category. AAFES joined such household names as FAO Schwartz and L.L. Bean in the finalist groups.

In the summer of 2008, to help cities, towns and people recover and get back to normal after Hurricane Ivan struck the Texas Gulf Coast, 7,500 National Guard members and other troops deployed to the Houston area. Associates from Texas exchanges jumped into action the day after the hurricane struck to set up and operate a 53-foot mobile field exchange at Ellington Field in Houston to serve the troops. A few days later, they moved the exchange-on-wheels to Galveston.


 

 

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