The Exchange
The Exchange (Army & Air Force Exchange Service) is a U.S. government non-appropriated fund retailer operating tax-free physical stores on military installations worldwide and the shopmyexchange.com e-commerce platform, serving authorized U.S. military service members and their families across more than 30 countries.
- Company typePrivate
- Founded1895
- HeadquartersDallas, United States
- Headcount5,001–10,000
- GTM typeB2C
- OfferingServices
What The Exchange does
The Exchange (legally the Army & Air Force Exchange Service, AAFES) is a U.S. government non-appropriated fund instrumentality under the Department of Defense, headquartered in Dallas, Texas, and operating since 1895. It runs a tax-free retail operation serving authorized U.S. military patrons — active-duty, reserve, retired service members, and their families — through a combination of physical stores located on military installations worldwide and the shopmyexchange.com e-commerce platform spanning more than 30 countries and territories. As the 51st largest U.S. retailer, The Exchange generated $8.5 billion in revenue with 10,000+ employees.
The core platform is a direct-to-consumer omnichannel storefront (shopmyexchange.com) integrated with the Military Star credit card program for captive financing, plus a Business Delivery B2B procurement channel for bulk unit purchases and an Express Online expedited fulfillment service. Supporting product surface includes gift cards, in-home services, rebates, weekly ads, clearance and outlet merchandising, and a movie guide for on-base theaters. Technology integrations and API surface are not publicly described; the storefront is the primary digital customer-facing asset, with email newsletters and sweepstakes as the main marketing channels.
The revenue model is transaction-based retail: The Exchange earns on merchandise sales to authorized patrons, with pricing structured around tax-free shopping, military-exclusive pricing, and free shipping above $49, supplemented by the Military Star card's financing economics. Distribution is exclusively direct-to-consumer (plus the B2B Business Delivery arm), with no third-party marketplace channeling and no external investor base — the organization is self-sustaining and operates under congressional oversight rather than under venture, private-equity, or public-market ownership. Leadership transitioned in February 2026, with Brad Bingham (previously Deputy Director/CFO since 2024) succeeding Tom Shull as Director/CEO.
The Exchange firmographics
Firmographics- Name
- The Exchange
- Legal name
- Army & Air Force Exchange Service
- Website
- https://shopmyexchange.com
- Company type
- Private
- Founded year
- 1895
- Operating status
- Operating
- Headcount range
- 5,001–10,000 employees
- Short description
- The Exchange (Army & Air Force Exchange Service) is a U.S. government non-appropriated fund retailer operating tax-free physical stores on military installations worldwide and the shopmyexchange.com e-commerce platform, serving authorized U.S. military service members and their families across more than 30 countries.
- Ownership category
- akta.pro rank
The Exchange industry classification
Industry- Product category
- Military Retail Services
- NAICS
- Retail Trade (44-45), Gift, Novelty, and Souvenir Retailers (45942)
- SIC
- Retail-Misc General Merchandise Stores (5399)
- akta.pro primary industry
- Military / Government Base Mass Merchandisers (Exchange Stores) (CRAGABAI)
- akta.pro secondary industries
- Travel Retail Mass Merchandisers (Airport/Transit General Merchandise) (CRAGABAJ), Outdoor & Sporting Goods-Focused Catalog Department Store Retailers (CRAGAIAG)
Keywords
Where The Exchange is headquartered
LocationHeadquarters
- HQ city
- Dallas
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
The Exchange business model
Business model- GTM type
- B2C
- Offering type
- Services
- Cost components
- Personnel, Operations, Supply Chain, Infrastructure, Marketing or Sales, Technology or R&D, Others
Revenue model
- Retail Sales: Operates retail stores and online platform providing tax-free shopping and military-exclusive pricing to service members and families. Generates revenue through merchandise sales across multiple product categories including electronics, apparel, and home goods.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Transaction based/ take rate | Pay-as-you-go | Tax-free shopping with military-exclusive pricing |
Go-to-market motion1 record
Distribution channels3 records
Marketing channels3 records
The Exchange product offering
Product offeringCore offering
The Exchange operates physical retail stores on U.S. military installations and the shopmyexchange.com e-commerce platform, providing tax-free shopping and military-exclusive pricing across product categories including electronics, apparel, and home goods. The offering is supplemented by the Military Star credit card, Business Delivery bulk ordering, Express Online expedited checkout, Gift Cards, and In-Home Services, serving eligible U.S. military service members and their families across more than 30 countries and territories.
Product overview
The Exchange (Army & Air Force Exchange Service) is a military retail organization operating as a single unified e-commerce and physical retail platform. The core offering is Shop My Exchange (shopmyexchange.com), an online shopping portal providing tax-free shopping and military-exclusive pricing. The platform integrates complementary services including the Military Star Card for financing, Business Delivery for bulk orders, Express Online for expedited checkout, Gift Cards, and Reel Time Movie Guide. Marketing channels include Weekly Ads, Clearance, Outlet, and Military-specific category sections. The portfolio also includes In-Home Services and Rebates programs, all serving eligible U.S. military members and their families across over 30 countries and territories.
Differentiator
Problem solved
Functional benefit
Brands
- Military Star: Credit card program offering exclusive credit and financing options for military members and their families
Products and services
- Shop My Exchange (shopmyexchange.com) Primary e-commerce platform providing tax-free online shopping with military-exclusive pricing for eligible U.S. military members and their families across electronics, apparel, home goods, and other categories.
- Military Star Card Exclusive credit and financing card for military community members, offering promotions, special offers, and account management and bill payment services through myecp.com.
- Business Delivery Bulk ordering and delivery service for military units and authorized patrons, enabling business-to-government procurement of supplies and merchandise.
- Express Online Expedited online ordering service for faster checkout and delivery options for Exchange shoppers.
- Gift Cards Gift card purchase and balance checking services available to Exchange shoppers for use at physical stores and online.
- Reel Time Movie Guide Theater movie listings and showtime information for movies available at Exchange location theaters.
- In-Home Services Home services including installation, repair, and maintenance services available to Exchange patrons through the Exchange marketplace.
Companies that use The Exchange
Customer profileNamed customers1 record
Segments1 record
Ideal customer profiles2 records
The Exchange technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
The Exchange partnerships and signals
Strategic signalPartnerships
One partnership is on record.
- U.S. Army Installation Management CommandminorGameSquare announced Soldier Showdown 8 esports tournament presented by USAA in partnership with the U.S. Army Installation Management Command's Directorate of Family and Morale, Welfare and Recreation. The Exchange is mentioned in context of a separate dealership acquisition (Kunes Lakes Chevrolet) but is not directly party to this partnership.
Scale indicators3 records
Recent moves6 records
Expansion highlights5 records
The Exchange competitors and assessment
Company assessmentBroad incumbents
- Amazon: Dominant e-commerce platform competing for online purchases by authorized military patrons. Direct comparator for shopmyexchange.com on assortment, delivery speed, and pricing, especially for APO/FPO addresses.
- Target: General-merchandise mass retailer competing for the same discretionary spending of military patrons off-base. Relevant for category-level assortment and pricing benchmarks that The Exchange matches against.
- Walmart: Largest U.S. mass merchandiser with overlapping product categories (electronics, apparel, home goods) and price-match competitive pressure on The Exchange. Serves as a direct commercial comparator for assortment, pricing, and digital retail benchmarks.
Direct peers
- Marine Corps Exchange (MCX): Marine Corps–focused military exchange offering tax-free shopping on bases and online. Same regulatory moat and customer profile as The Exchange, operating the equivalent retail platform for Marines.
- Coast Guard Exchange (CGX): Operates retail stores and an e-commerce platform for U.S. Coast Guard personnel and families. Directly analogous to The Exchange in mission and value proposition, though smaller in scale.
- Veterans Canteen Service (VCS): VA-operated retail and food service operation serving veterans at VA medical centers. Comparable as a government-run retail entity serving a defined eligible population, though narrower scope than The Exchange.
- Defense Commissary Agency (DeCA / Commissaries): DoD agency operating military commissaries (groceries) for service members and families. Comparable in regulatory moat and authorized-patron model, though focused on grocery rather than general merchandise.
- Navy Exchange Service Command (NEX): Operates the Navy equivalent of military exchange retail stores and e-commerce for U.S. Navy sailors, Marines, and their families. Directly comparable in mission, product mix, tax-free pricing model, and customer base structure.
Regional players
- DX (Defense Exchange) — generally a public-facing brand operated by the Army & Air Force Exchange Service itself in select commercial locations: Operates as an extension of the same parent entity, the Army & Air Force Exchange Service, serving the same customer base. Included for completeness as a same-operator label.
Emerging players
- Dollar General: Value-format retailer increasingly located near and on military installations. Overlaps with The Exchange in everyday consumables and household categories, particularly relevant to lower-income service members and rural base areas.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat4 records
Key risks6 records
Key highlights7 records
Customer concentration
The Exchange social profiles
Digital presenceThe Exchange financial estimates
Financial estimateRevenue estimate
Valuation estimate
The Exchange leadership team
Management profileNumber of profiles
Profiles2 records
The Exchange funding detail
Funding detailFunding overview
Funding rounds3 records
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
The Exchange M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about The Exchange
What does The Exchange do?
The Exchange operates physical retail stores on U.S. military installations and the shopmyexchange.com e-commerce platform, providing tax-free shopping and military-exclusive pricing across product categories including electronics, apparel, and home goods. The offering is supplemented by the Military Star credit card, Business Delivery bulk ordering, Express Online expedited checkout, Gift Cards, and In-Home Services, serving eligible U.S. military service members and their families across more than 30 countries and territories.
Is The Exchange a public or private company?
The Exchange is a private company. It is classified as state government owned and is currently operating.
When was The Exchange founded?
The Exchange was founded in 1895. It employs 5,001 to 10,000 people.
Where is The Exchange based?
The Exchange is headquartered in Dallas, United States, in the North America region.
How does The Exchange make money?
One revenue line is on record: retail Sales.
Who are The Exchange's main competitors?
Broad incumbents on record are Amazon, Target and Walmart. Direct peers are Marine Corps Exchange (MCX), Coast Guard Exchange (CGX), Veterans Canteen Service (VCS), Defense Commissary Agency (DeCA / Commissaries) and Navy Exchange Service Command (NEX). DX (Defense Exchange) — generally a public-facing brand operated by the Army & Air Force Exchange Service itself in select commercial locations is listed as a regional player. Dollar General is listed as an emerging player.
Does The Exchange have an API?
No public API is recorded for The Exchange.
What industry is The Exchange in?
The Exchange's product category is Military Retail Services. Its primary akta.pro industry code is CRAGABAI, Military / Government Base Mass Merchandisers (Exchange Stores), with a secondary code of CRAGABAJ, Travel Retail Mass Merchandisers (Airport/Transit General Merchandise). Its NAICS code is 44-45 and its SIC code is 5399.