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AAFES History

Highlights

For more than 100 years, AAFES’ mission has been to support the men and women of the Armed Forces around the world during military operations. "We go where you go" epitomizes AAFES’ mission, particularly when our service members are stationed far away from American shores. At war and in peacetime, AAFES provides Soldiers and Airmen with the service and merchandise they need to make their lives more comfort-able. AAFES also maintains service and support to family members and troops back home. AAFES’ partnership to the services’ morale, welfare and recreation (MWR) programs reflect loyalty and dedication to the service member beyond the sale at the cash register.

1800s

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

1910s

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

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

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

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

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

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

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

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

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

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.

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.

 


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