I worked retail for what used to be the largest sporting goods retailer in the world before I joined the Navy. Later in life I was a base XO and CO. It is through those lenses that I offer the following:
- The Navy may have finally stabilized its NEX leadership. They made a decision to convert the flag billet to civilian. The outgoing flag competed and is its leader. Retail operations need strong long term leadership. Only time will tell but I do hope that it works out well.
- NEX employee attitudes have been hit or miss over the decades. I will say they appear to be making a concerted effort to improve that.
- In successful commercial retail, everyone (the buyers, operations, store front, shipping and receiving, etc) all operate with a need to turn the inventory quickly...a sense of urgency. So they try to buy smart (e.g. don't put winter clothing in a tropical location like the NEX can do), understand their competitors, ruthlessly manage shrinkage, etc. It's my opinion that the NEX does not operate that way, yet.
- The NEX likes to state that their excess profits are given to MWR. If you pull that thread, what you find is that only the larger exchanges (usually located at fleet concentration centers) are able to do it. The rest can't give MWR anything because they don't have the sales volume. As a general rule, MWR HQ does not share that money amongst the other bases who got little to zero
- What do you think are their top two profit generators? Alcohol and tobacco. I am near certain that someone has analyzed what NEXs would close if those two products stopped being sold and I bet the answer is not pretty. So we have Navy leadership rightly encouraging the cessation of tobacco use and to drink smart (e.g. 0 0 1 3); however the NEX and their MWR benefactors have a conflict of interest in the area of profit generation.
- When I first learned about the Military Star Card program I asked my NEX manager if the NEX was also offering credit counseling services or coordinating with FFSC or Navy Relief for the credit counseling. I knew what the answer was before I asked the question but it didn't stop me from calling NEX HQ to let them know that that I didn't think they were acting in the best interests of our junior personnel.
- On the few occasions when I frequented the Norfolk NEX, I grew to despise the sellers in the common area outside the main retail space. I witnessed some aggressive and hard core sales tactics targeting our junior personnel.
- NEXs have their place (fleet concentration areas, remote and isolated locales) and I think some could be shut down because of infrastructure outside the fence and if NEX expanded their mail order did a better job of competing with AMAZON.
- The NEX is on my scope when I am purchasing items, but more often than not, Walmart, Target and Amazon get my business.
- I've felt strongly that the NEX needs to study the concept of putting the NEX retail business out for bid. It would be a GOCO (govt owned, contractor operated) business. I think we would see prices drop, and more MWRs getting coin to improve their programs. It could be on a base year plus 4 option year basis. We own everything (buildings, fixtures, merchandise), but they are running the show, buying stock, hiring and firing, controlling costs and they would be highly incentivezed to generate profit.
Best exchange - MCX Henderson Hall. Largest/smallest I've seen: Norfolk / Key West
Funniest event: My base was remote and isolated so we tried to figure out a way for the govt civilians to access the commissary but we weren't that remote and isolated. So we reviewed the regs and figured out that the NEX could be accessed by the govt civlians with the CO's permission. I asked the NEX if they would consider adding a cold case and expand their food selections . It was a big success and about a month into it I get a note from an active spouse saying "thank you" for expanding the NEX food selection because she could buy milk for her large family at almost a dollar a gallon cheaper than at the commissary. A few days later with the NEX and Commissary managers in my office, asking them to figure this out, the Commissary lowered their milk price. Who sez competition isn't a good thing. You can mess with the price of gas, but you mess with the price of milk, you'll get a letter.
