Navy Exchange

Navy Exchange

File:Navy Exchange Logo.jpg
Company type	Federal agency
Industry	Retail
Founded	Brooklyn, New York (1946)
Headquarters	Virginia Beach, Virginia
Number of locations	300+
Area served	Global
Key people	R. Adm. (Ret.) Robert J. Bianchi (CEO)
Products	Discount department store, superstore
Revenue	Increase $3.2 billion (2014)
Number of employees	14,000
Parent	Naval Supply Systems Command
Website	mynavyexchange.com

Navy Exchange represents a retail chain owned and managed by the United States Navy through the Navy Exchange Service Command (NEXCOM), which operates under the Naval Supply Systems Command. It provides merchandise and services to active-duty military, veterans, and eligible civilians stationed at Navy bases across the United States, overseas installations, and aboard naval vessels. Although it is a form of base exchange, the Navy Exchange functions independently from other exchanges such as the Army & Air Force Exchange Service (AAFES), Marine Corps Exchange, and Coast Guard Exchange.

History

The origins of what is now known as the Navy Exchange, often called the "NEX" by sailors, trace back to the 19th century when local vendors known as "bumboats" would approach arriving Navy ships in port to sell goods. These merchants frequently charged inflated prices for items of questionable quality.

In 1896, to retain sailors’ funds aboard and ensure fair pricing, a "Canteen" was established on the USS Indiana. Later, the Naval Appropriations Act of March 3, 1909 officially authorized stores and commissaries on naval vessels. This development pressured bumboat operators to adapt by offering services like shoe repair and haircuts to sailors, which led to the creation of "ship services stores" onboard. Eventually, these retail operations were consolidated to enhance efficiency and optimize space utilization.

As shipboard retail expanded, shore-based facilities followed suit. In 1946, a committee led by Captain Wheelock H. Bingham recommended integrating shore-side retail activities with those aboard ships. This recommendation resulted in establishing the Navy Ship's Store Office in 1946, laying the groundwork for today's Navy Exchange system.

Currently, Navy Exchanges function similarly to large commercial retailers, offering a wide range of products including apparel and various services such as barber shops, floral shops, and laundry facilities depending on their location. While most outlets are situated on military installations, some operate from leased commercial properties, and others—known as "Ship's Stores"—serve aboard naval vessels like aircraft carriers.

NEXCOM oversees several business sectors including Navy Exchange Retail Stores, Navy Lodge Hotels, Navy Gateway Inns & Suites hotels, the Navy Uniform Project Management Office (UPMO), Navy Clothing Textile and Research Facility (NCTRF), Ship's Stores Program, and Telecommunications Program Office (TPO).

On January 13, 2017, the Department of Defense announced that starting November 11, 2017, all honorably discharged Veterans would gain access to tax-free shopping through online Military Exchanges. This expanded privilege is projected to offer online shopping benefits to approximately 13 million Veterans. Subsequently, on June 5, 2017, Military Exchanges launched VetVerify.org—a platform enabling Veterans to confirm their eligibility for online shopping—and announced that select Veterans registering would receive early access as beta testers before the official launch date.