navigation search this article relies too much on references to primary sources . please improve this by adding secondary or tertiary sources . december 2015 learn how and when to remove this template message it has been suggested that this article be merged into base exchange . discuss proposed since december 2015 . army and air force exchange service type department store government agency industry retail founded 1895 headquarters 3911 s. walton walker blvd. dallas texas 75236 united states number of locations 2 500 all facilities key people tom shull director ceo revenue us 8.5 billion 2015 1 us 9.2 billion 2014 1 number of employees 35 000 parent united states department of defense website www.shopmyexchange.com the army and air force exchange service exchange or aafes is the retailer on u.s. army and air force installations worldwide . the exchange is headquartered in dallas texas and its director chief executive officer is tom shull . the oldest and the largest of the department of defense s exchange services the exchange operates department stores convenience stores restaurants movie theaters and an internet shopping site to serve soldiers airmen and their families . in addition to u.s. bases in belgium germany italy england turkey south korea and japan the exchange operates stores for u.s. troops in iraq afghanistan and other countries in the region . the exchange ensures soldiers and airmen have access to u.s. goods and services wherever they serve . in addition to their retail support for the military the exchange also outfits troops with combat uniforms at cost and serves school lunches for children attending department of defense schools overseas . contents 1 history 2 structure and funding 3 earnings 4 stores 5 employees 6 military star card 7 see also 8 references 9 external links history edit soldiers take a break at a post exchange in this 1914 photo . the first exchanges were established on july 25 1895 when the war department issued general orders number 46 directing post commanders to establish an exchange at every post . 2 before the formation of the exchange service u.s. military forces purchased provisions from bands of peddlers known as sutlers who followed the army . the army exchange service was formally established in 1941 and became the army & air force exchange service in 1948 following the formation of the air force . since its establishment the exchange has been involved in 14 major military operations to include world war ii korea vietnam grenada panama the balkans and operations enduring and iraqi freedom as well as several dozen humanitarian and disaster relief contingencies . structure and funding edit part of the department of defense the exchange is directed by a board of directors responsible to the secretaries of the army and air force through the chiefs of staff . as a non appropriated fund activity the exchange self funds 97 percent of its operations with revenue coming from the sale of goods and services . the majority of the 3 percent in appropriated funds is used to fund overseas operations . 3 earnings edit exchange earnings provide dividends to support military quality of life programs . in fiscal 2015 the exchange had revenue of 8.5 billion and 402 million in earnings . of those earnings 237 million were paid to army morale welfare and recreation mwr air force services and navy and marine corps quality of life programs . 4 in the past 10 years the exchange has distributed more than 2.4 billion for mwr to fund quality of life improvements . 5 the remainder of the exchange s earnings are mostly used to fund new facility construction and maintenance at no cost to the federal government . stores edit the army & air force exchange service s main store on fort belvoir va. the exchange operates more than 2 500 facilities including main stores convenience stores military clothing stores and theaters across 50 u.s. states and 33 countries . additionally the exchange has nearly 1 500 quick serve restaurants such as taco bell burger king popeyes subway and starbucks as well as over 3 300 concession operations . 5 authorized patrons of the exchange include active duty reserves national guard retired members of the u.s. uniformed services recipients of the medal of honor honorably discharged veterans certified 100 % disabled by the united states department of veterans affairs or when hospitalized and their dependents by the presentation of the u.s. uniformed services privilege and identification card . 6 modern base and post exchanges provide tax free goods including name brands such as michael kors coach and ralph lauren to authorized shoppers . in addition some exchanges host concession malls with a variety of vendors and storefronts . in november 2010 the exchange unveiled freedom crossing at fort bliss a 100 million outdoor mall anchored by a 217 000 square foot exchange main store and including a children s play area outdoor dining patios shaded landscaped areas outdoor seating an outdoor fireplace an interactive fountain a lawn for community events and concerts and more than 40 storefronts and restaurants . the mall is the first of its kind on a united states armed services base . 7 8 employees edit the exchange employs nearly 35 000 associates worldwide in the united states europe the pacific and the middle east . of these about 27 percent are military spouses or dependents 10 percent are veterans and 2 percent are active duty reserves and the national guard . 9 in 2015 the exchange ranked no. 40 in victory media s top 100 list of military friendly employers . 10 in all about 88 percent of the exchange s associates are connected in some way to the military . 11 since sept. 11 2001 more than 4 400 exchange associates have deployed to combat zones in iraq and afghanistan to support troops in combat operations . 11 the exchange currently operates 49 stores in contingency zones in countries such as afghanistan kuwait iraq saudi arabia jordan qatar united arab emirates romania cyprus bosnia and kosovo . 5 military star card edit the exchange also operates and funds the exchange credit program ecp a program established by congress in 1979 to protect service members from predatory lending and offer responsible credit solutions to customers . the exchange credit program s military star card counts approximately 2 million cardholders from all branches of service including qualified dependents among its members . the exchange credit program markets military star as the one card solution for all purchases made on military installations . like the exchange the exchange credit program contributes a significant portion of its earnings to morale welfare and recreation programs furnishing 639 million to mwr programs over the last 10 years . 12 see also edit military of the united states portal united states air force portal united states army portal base exchange canex canadian equivalent naafi united kingdom equivalent navy exchange references edit a b the army & air force exchange service 2015 annual report pdf . the army & air force exchange service . sep 26 2016 . cite error invalid ref tag ; name the army .26 air force exchange 2014 annual report defined multiple times with different content see the help page . the exchange about exchange public affairs press releases . exchange quick facts . shopmyexchange.com . army & air force exchange service . retrieved 29 january 2016 . http h2.aafes.com sites 11 scc shared % 20documents annual % 20reports 2014 % 20annual % 20report . pdfhttp www.aafes.com images aboutexchange publicaffairs 2015 annualrpt.pdf a b c benefit fact sheet . myarmybenefits.com . u.s. army . retrieved 26 september 2016 . the exchange exchange stores authorized patrons . avila celina 5 november 2010 . more new mall opens on fort bliss . kvia tv . retrieved 29 january 2016 . poe david 28 october 2010 . aafes commander casella said freedom crossing at fort bliss ready to shine nov. 5 . army.mil . retrieved 29 january 2016 . the exchange about exchange exchange quick facts . retrieved sep 26 2016 . top 100 . military friendly . retrieved 26 september 2016 . a b exchange by the numbers . shopmyexchange.com . army & air force exchange service . retrieved 29 january 2016 . about ecp . myecp.com . exchange credit program . retrieved 29 january 2016 . external links edit wikimedia commons has media related to army and air force exchange service . official site the exchange mission news & more v t e united states department of defense headquarters the pentagon ashton carter secretary of defense robert work deputy secretary of defense office of the secretary of defense including defense agencies and dod field activities deputy secretary of defense deputy s advisory working group office of net assessment special access program oversight committee under secretary of defense for acquisition technology and logistics director defense research and engineering defense advanced research projects agency missile defense agency defense contract management agency defense logistics agency defense technical information center defense threat reduction agency office of economic adjustment defense acquisition university defense acquisition board under secretary of defense for policy defense security cooperation agency defense prisoner of war missing personnel office defense policy board advisory committee under secretary of defense comptroller defense contract audit agency defense finance and accounting service under secretary of defense for personnel and readiness defense commissary agency department of defense education activity dod human resources activity military health system uniformed services university of the health sciences defense equal opportunity management institute office of the chancellor for education and professional development under secretary of defense for intelligence defense intelligence agency defense security service defense information systems agency national geospatial intelligence agency national reconnaissance office national security agency director assistant secretary of defense for public affairs defense media activity american forces press service american forces radio and television service stars and stripes the pentagon channel general counsel of the department of defense defense legal services agency director of administration and management pentagon force protection agency washington headquarters services military departments department of the army secretary of the army the secretariat under secretary of the army assistant secretary for acquisition logistics and technology assistant secretary for civil works assistant secretary financial management and comptroller assistant secretary of the army for installations energy and environment assistant secretary of the army for manpower and reserve affairs general counsel of the army the administrative assistant the army staff chief of staff of the army vice chief of staff of the army sergeant major of the army deputy chief of staff g 8 chief of chaplains judge advocate general provost marshal general surgeon general u.s. army field organizations see structure of the united states army department of the navy secretary of the navy the secretariat under secretary of the navy assistant secretary of the navy financial management and comptroller assistant secretary of the navy installations and environment assistant secretary of the navy manpower and reserve affairs assistant secretary of the navy research development and acquisitions general counsel of the navy judge advocate general naval criminal investigative service naval inspector general headquarters marine corps commandant of the marine corps assistant commandant of the marine corps sergeant major of the marine corps chaplain u.s. marine corps field organizations see organization of the united states marine corps office of the chief of naval operations chief of naval operations vice chief of naval operations master chief petty officer of the navy director of naval reactors chief of chaplains chief of naval personnel surgeon general united states navy field organizations see structure of the united states navy department of the air force secretary of the air force the secretariat under secretary of the air force assistant secretary of the air force acquisition assistant secretary of the air force financial management & comptroller assistant secretary of the air force installations environment & logistics assistant secretary of the air force manpower & reserve affairs general counsel of the air force air force