Monday, December 23, 2013

Commissary closure?

The Defense Commissary Agency (DeCA) has been asked for a plan to close all stateside commissaries as part of plan to save money. If accepted, it would end a valued benefit for many servicemembers and veterans.[Source]

"Commissaries rely on $1.4 billion a year to operate 247 stores worldwide," the article states. Closing the 180 stateside locations would free up some $800-$900 million annually -- money that could be used for training, equipment readiness, or maintaining troop levels.

In past years, when Army bases were located in the middle of nowhere, commissaries were an essential part of military life. Without them, military personnel would have had to ship food to their locations. Subsidies for the commissaries helped defray shipping costs for military personnel, improving their quality of life.

Yet as bases have been around for decades, towns have developed with their own grocery stores. Though commissaries are still valued for their low prices (of course -- they're subsidized), there hasn't been as much of a need for them.

One Army lieutenant colonel voiced an opinion that matches my own -- that while he valued the commissary when stationed overseas and thinks it’s a necessity there, it’s not worth his time now that he's back in the U.S.

“It’s overrun by retirees who fill up baskets and baskets,” he said. “I’ve waited 30 to 45 minutes to get through the line. It seems like any savings is negated by the surcharge and the bagger tips.” [Source]

The real question is, then, which takes precedence: current military and retirees or taxpayers and the private market? In my mind, it's the latter, though I'd prefer to explore a few more options before shutting down all the commissaries in the U.S.

First, I think the commissaries should raise their prices. There's simply no need for the government to complete with private supermarkets. Second, bases should consolidate their PXs with their commissaries and liquor stores ("Class 6 shops"). By combining these three facilities, they can achieve economies of scale that will help them lower administrative costs.

If those efforts don't succeed, or if the Army can't enact the required regulatory changes, then closure of stateside commissaries would be appropriate.

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