Army & Air Force Exchange Service

The Army & Air Force Exchange Service, commonly known as AAFES or The Exchange, is the Department of Defense retail agency serving the U.S. Army, Air Force and Space Force communities. It operates post exchanges, base exchanges, department and specialty stores, convenience stores, military clothing outlets, restaurants, theaters, concession operations and an online marketplace. Its customers include active-duty service members, National Guard and Reserve members, retirees, eligible veterans, military families and selected civilian personnel. Exchange facilities operate on military installations throughout the United States and overseas, including locations supporting deployed and contingency forces. The organization’s institutional roots lie in the late nineteenth-century effort to replace unreliable and sometimes exploitative civilian sutlers and post traders with controlled, financially self-sustaining military retail operations. In 1895, the War Department directed Army posts to establish post exchanges where practicable. These facilities were intended both to provide soldiers with reasonably priced necessities and to offer constructive recreation. For decades, individual posts managed their own exchanges. The system became more centralized during the buildup to World War II, when the Army recognized that a global conflict required a coordinated chain of stores and logistics network. The Army Exchange Service was created in 1941 and was renamed the Army & Air Force Exchange Service in 1948 after the Air Force became a separate military branch. The Exchange is a non-appropriated-fund activity. Rather than relying primarily on congressional appropriations, it finances most operations through customer revenues. Its earnings are returned to the military community through quality-of-life dividends and services, including support for morale, welfare and recreation programs, at-cost combat-uniform outfitting and overseas school-meal programs. The agency therefore combines a commercial retail role with a military-support mission. It also maintains operations in austere and contingency environments, including mobile stores and facilities serving deployed personnel. Its assortment includes tax-free national-brand merchandise, groceries and convenience products, apparel, electronics, home goods, optical and other services, military uniforms and equipment, and food from branded restaurant partners. The Exchange has expanded its digital business through ShopMyExchange.com and has progressively widened eligibility. Honorably discharged veterans gained online exchange shopping access in 2017; certain disabled veterans, Purple Heart recipients, former prisoners of war and eligible caregivers gained in-store access in 2020; and Department of Defense and Coast Guard civilian employees became eligible in stages beginning in 2021. The organization also emphasizes veteran and military-spouse employment, wellness through its BE FIT 360 initiative, and emergency support during military operations and natural disasters. The Exchange is headquartered in Dallas and is governed through a board responsible to the secretaries of the Army and Air Force. Historically led by senior military officers, it appointed its first civilian director and chief executive officer, Tom Shull, in 2012. Brad Bingham succeeded Shull as director and CEO in 2026 according to the cited reference material. The Exchange remains an active military retail institution whose commercial scale is used to provide convenience, savings and community benefits to authorized patrons.

The Exchange developed from the U.S. military’s long effort to provide soldiers with dependable goods and constructive recreation inside military installations. Before formal exchanges existed, sutlers and post traders supplied troops, but they were frequently criticized for high prices, poor merchandise and corrupt practices. In 1880, Col. Henry A. Morrow established a military canteen at Vancouver Barracks to give soldiers access to newspapers, games, light food and drink without requiring them to visit disreputable establishments outside the post. Similar facilities spread to other Army installations, and an 1889 War Department order authorized commanding generals to establish canteens. In 1892, the War Department adopted the term “post exchange,” partly to avoid the negative associations attached to the word canteen. General Orders No. 46, issued on July 25, 1895, directed commanders to establish post exchanges wherever practicable. The system had a dual purpose: supplying troops with ordinary articles at reasonable prices and providing recreation, while using operating profits to improve soldiers’ welfare. Early exchanges were largely autonomous. Individual post commanders managed them, while Army inspections and financial accountability provided limited central oversight. The decentralized model became inadequate as the Army expanded during World War I and prepared for larger overseas operations. Civilian organizations helped provide wartime canteen services, but the Army’s experience showed the need for a professional, integrated retail and logistics structure. During the mobilization preceding World War II, Army reviews concluded that the service needed a worldwide chain-store system. A committee of retail executives supported creation of a central organization, and the Army Exchange Service was established on June 6, 1941. The new organization coordinated purchasing, distribution, merchandising and operations across Army locations. After the Air Force became a separate service in 1947, the Army Exchange Service was renamed the Army & Air Force Exchange Service on July 26, 1948. Since then, the Exchange has supported troops and families during major military operations, including World War II, the Korean and Vietnam wars, Grenada, Panama, the Balkans, and the wars in Afghanistan and Iraq. It has also participated in humanitarian and disaster-relief responses. Mobile field exchanges have supplied personnel in locations where permanent stores were unavailable, including response operations after the September 11 attacks and during major U.S. hurricanes. The modern Exchange operates as a Department of Defense non-appropriated-fund activity. It is governed by a board of directors accountable through the Army and Air Force leadership, while most operating funds come from sales rather than congressional appropriations. Earnings are directed back to military quality-of-life programs, and the organization also provides services with a direct military-support purpose, such as outfitting troops with combat uniforms at cost and supporting overseas Department of Defense school meals. During the twenty-first century, the Exchange broadened its retail proposition. Under Tom Shull, appointed the first civilian director and CEO in 2012, it expanded national-brand merchandise, developed convenience formats, strengthened e-commerce and pursued partnerships that brought more first-run films to military theaters. The organization also made access more inclusive. In 2017, online shopping was opened to honorably discharged veterans. Legislative and Defense Department policy changes brought in-store privileges to additional disabled veterans, Purple Heart recipients, former prisoners of war and eligible caregivers in 2020, followed by access for DoD and Coast Guard civilians in 2021. The Exchange now combines physical stores, food service, entertainment, concessions, online retail and wellness-related services across domestic, overseas and contingency locations. It employs a workforce heavily connected to the military community and has emphasized hiring veterans, wounded warriors and military spouses. Its continuing role is not simply to sell goods, but to maintain convenient, tax-free access for authorized patrons and convert commercial activity into benefits for service members, families, retirees and veterans.

• 2021

  Civilian employee access expanded

  [1]Army & Air Force Exchange Serviceen.wikipedia.org

  DoD and Coast Guard civilian employees received exchange access in the continental United States, followed by online eligibility.

• 2020

  Additional veteran groups receive in-store access

  [1]Army & Air Force Exchange Serviceen.wikipedia.org

  Disabled veterans, Purple Heart recipients, former prisoners of war and certain caregivers gained in-store exchange privileges.

• 2017

  Online shopping opened to eligible veterans

  [1]Army & Air Force Exchange Serviceen.wikipedia.org

  Honorably discharged veterans received online exchange shopping privileges beginning on Veterans Day.

• 2012

  First civilian director and CEO appointed

  [1]Army & Air Force Exchange Serviceen.wikipedia.org

  Tom Shull became the organization’s first civilian director and chief executive officer.

• 1948

  AAFES name adopted

  [1]Army & Air Force Exchange Serviceen.wikipedia.org

  The Army Exchange Service was renamed the Army & Air Force Exchange Service after the Air Force became a separate service branch.

• 1941

  Army Exchange Service created

  [1]Army & Air Force Exchange Serviceen.wikipedia.org

  The Army centralized exchange operations through the creation of the Army Exchange Service during World War II mobilization.

• 1895

  Post exchange system formally directed

  [1]Army & Air Force Exchange Serviceen.wikipedia.org

  General Orders No. 46 directed Army commanders to establish post exchanges wherever practicable.

• 1892

  The term post exchange adopted

  [1]Army & Air Force Exchange Serviceen.wikipedia.org

  The War Department directed that military canteens be referred to as post exchanges.

• 1889

  Canteens authorized across Army posts

  [1]Army & Air Force Exchange Serviceen.wikipedia.org

  The War Department authorized commanding generals to establish canteens at Army posts.

• 1880

  First modern military canteen established

  [1]Army & Air Force Exchange Serviceen.wikipedia.org

  Col. Henry A. Morrow established a canteen at Vancouver Barracks offering soldiers refreshments, reading material and recreation on post.

A tax-free, mission-oriented retail and services network that combines commercial convenience with direct support for military quality-of-life programs.

• Retail stores

  Exchange department and specialty stores

  Large installation-based stores selling apparel, electronics, household goods, beauty products, luggage, jewelry, groceries and other general merchandise. Stores offer tax-free shopping to authorized patrons and may include national-brand shops, concession malls and service counters.

• Convenience retail

  Exchange Express

  Convenience-store formats serving military installations with snacks, beverages, packaged food, household essentials, fuel-related convenience and other frequently purchased products. The format is designed for quick shopping near housing, workplaces and operational areas.

• Military apparel and equipment

  Military clothing stores

  Specialized outlets supplying uniforms, boots, insignia, accessories and related equipment to service members. The Exchange also outfits troops with combat uniforms at cost, connecting retail operations directly to readiness requirements.

• Food service

  Exchange restaurants

  Food-service locations operated directly or through branded concessions, including quick-service, fast-casual, coffee and snack concepts. Reported partners include Subway, Qdoba, Panera, Panda Express, Burger King, Popeyes, Taco Bell, Pizza Hut, Starbucks and others.

• E-commerce

  ShopMyExchange.com

  The Exchange’s online marketplace, providing tax-free shopping to eligible patrons and extending access to honorably discharged veterans and other authorized groups. The assortment includes apparel, electronics, home goods, appliances and other retail categories.

• Mobile retail and contingency support

  Mobile field exchanges

  Deployable, truck-based retail units that bring essential merchandise and convenience goods to troops, first responders and communities affected by military operations or disasters when permanent facilities are unavailable.

• Wellness services

  BE FIT 360

  A holistic wellness initiative spanning better-for-you restaurant choices, fitness apparel and equipment, and selected on-installation services such as optical, dental and chiropractic offerings.

• 2023The Home Depot partnership

  United States · online

  The Exchange partnered with The Home Depot to provide tax-free appliances through ShopMyExchange.com and selected physical showrooms.

  Outcome. The home-improvement assortment was expanded for eligible military shoppers.

  Source
• 2021DoD and Coast Guard civilian access

  United States

  Exchange access was extended to eligible Department of Defense and Coast Guard civilian employees in the continental United States, with online privileges added later in the year.

  Outcome. The eligible customer base broadened while the Exchange sought to increase buying scale and quality-of-life dividends.

  Source
• 2020Expanded veteran in-store access

  United States

  The Exchange implemented expanded in-store shopping privileges for service-connected disabled veterans, Purple Heart recipients, former prisoners of war and primary family caregivers covered by the relevant Department of Veterans Affairs program.

  Outcome. Additional veteran and caregiver populations gained access to exchange retail and related installation facilities.

  Source
• 2017Veterans online shopping benefit

  United States · online

  The Exchange pursued and implemented a policy change allowing honorably discharged veterans to shop online at military exchanges. The benefit was announced in January 2017 and began on Veterans Day, creating online access for an estimated 18 million veterans.

  Outcome. Online exchange eligibility expanded beyond traditional installation-based patrons.

  Source

• 2023

  Add The Home Depot merchandiseM&A

  Background

  The Exchange sought to broaden its home-goods assortment and offer tax-free access to appliances for eligible customers.

  Action taken

  It partnered with The Home Depot for online sales and selected in-store showrooms.

  Aftermath

  The partnership was expanded in 2025 to include additional tools, outdoor equipment, grills, garden products and ceiling fans.

  Source

• 2020

  Implement statutory expansion of in-store eligibilityOther

  Background

  The Purple Heart and Disabled Veterans Equal Access Act of 2018 and associated defense legislation expanded installation retail access for specified veteran groups and caregivers.

  Action taken

  The Exchange began granting in-store privileges to eligible disabled veterans, Purple Heart recipients, former prisoners of war and certain caregivers.

  Aftermath

  The Exchange and other military resale facilities served a broader veteran community.

  Source

• 2017

  Open online shopping to honorably discharged veteransStrategy

  Background

  The Exchange sought to broaden its customer base and extend military benefits to veterans who no longer had routine installation access.

  Action taken

  Following Department of Defense approval, the Exchange launched online shopping eligibility for honorably discharged veterans.

  Aftermath

  An estimated 18 million veterans became eligible to shop online through military exchanges.

  Source

• 2012

  Appoint a civilian retail executiveStrategy

  Background

  The Exchange had historically been led by senior military officers, while its commercial operations faced changing retail and e-commerce conditions.

  Action taken

  Tom Shull became the first civilian director and CEO, emphasizing national brands, convenience formats, online retail and operating efficiency.

  Aftermath

  The organization increased its focus on modern merchandising, digital sales, film partnerships and the earnings returned to military quality-of-life programs.

  Source

• 1941

  Centralize military exchange operationsStrategy

  Background

  The decentralized post exchange model was considered insufficient for the scale and logistical demands of World War II mobilization.

  Action taken

  The Army created the Army Exchange Service as a central organization overseeing a worldwide exchange network.

  Aftermath

  Centralized purchasing, distribution and management enabled the exchange system to support global military operations.

  Source

• 2020-03-18

  The Exchange acquires worldwide sales rights to The Killing of Two Lovers[3]The Exchange取得《The Killing of Two Lovers》全球销售权screendaily.com

  Reported: 2020-03-18

  The Exchange acquired worldwide sales rights to The Killing of Two Lovers, a film selected for Sundance’s NEXT section.

1. 1Army & Air Force Exchange Serviceen.wikipedia.org
2. 2The Exchange official websiteshopmyexchange.com
3. 3The Exchange取得《The Killing of Two Lovers》全球销售权screendaily.com