Direct Marketing Catalog/eCommerce - Exchange

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Brian LamoreauxMerchandise ManagerDirect MarketinggCatalog/eCommerce

Multi‐‐channel RetailingMultiMulti Channel retailers account for 75% of online salesRetailing to customers through all available selling channels Stores Catalog eCommerceCustomers Choice Shopping when, where and how desiredM k i across allll channels:Marketinghl cross merchandisingh di i Tabloids eMail Newsletters Direct Mail Web

Working TogetherExtension of store stock assortmentsExpandedpassortments in keyy categoriesg Electronics Personal Computers Furniture Jewelry Major AppliancesSatisfying OUR customers’ needs Highest Volume Day of the Week:Wednesday (1100 – 1200 Hrs)

Who is shopping us?Active dutyRetiredReservesNational GuardOther38%32%11%11%8%ArmyAir ForceNavyMarinesCoast GuardOther*46%32%14%5%1%2%* Includes AAFES, DOD Civ, State Dept, etc

Catalog/eCom StrategyOverall Strategy- Catalogs & eCommerceSeveral ways to do business- Warehouse (Memphis, Giessen & Yokota)- Based on cost effectiveness- Dropp Shipp (Preferred(Method))- Accounts for 75% Cat/eCom sales- Requires EDI or ECOMS participation- Virtual Vendor- Exchange OnLine Mall

Catalogs2 Big Books Fall/Winter Spring/Summer20 Specialty andSupplementalpublicationsHome Décor, ODL, Kids, Appliances, Electronics, Jewelry, Fashion, and more

OnLine Opportunities130,000 SKU’s with 30,000 keys are on our web site.Most are not featured in a catalogPromotional OpportunitiesHome PageLanding PagesBannersTopLeft‐SideCoordinating items“Push”Ability to push specific suppliers or products to the top of thepage7

Virtual Vendor Business ModelMirror all or part of supplier’s online store- Ability to accommodate a link- Establish pricing- Ability to refine assortmentBuy through Exchange Online Shopping Cart- Customer checks out only once- Orders sent to vendor for fulfillment (drop ship)POC: Rosa Sifuentes, [email protected]

Virtual Vendor Business ModelDell Computers & Accessories 2009: 17M2009 Fillpoint (Gaming) 9.5M NewN AAge ElElectronicst i 3.1M 3 1M Alienware 2.3 OOfficece Depotepot 1.3M .32009 Virtual Vendor Sales 41.1 M

Exchange OnLine MallExchange OnLineMall concessions (110 Shops): Provide customer discounts from 5%-25% off on purchases Offer selection and stylesy from recognizablegbrands Supplements exchange store assortments Allows exchanges to utilize floor space and inventory investmentin other categoriesgFY 09 Sales - 15MOur customers saved almost 2M by choosing to shop the ExchangeOnLine Mall stores over the retailer’s regular sites!

Exchange OnLine Mall

Special Order Program345 vendors now available online and by phoneCustomers can easily request items not available inthe Exchange Catalog or OnlineAvailable 24/7

Catalog/eCommerceCatalog/eCommerce Sales History2002 Sales 114.5M, 17% increase2003 SalesS l 151.6M, 151 6M 32% increasei2004 Sales 157.9M, 5% increase2005 Sales 193.5M, 193 5M 23% increase2006 Sales 222.9M, 15% increase2007 Sales 240.5M,, 3% increase2008 Sales 216.8M, 10% decrease2009 Sales 214M ‐1%

Distribution of Earnings to Main Stores100% of Catalog/Internet earnings within 40 miles ofthe AAFES Main StoreDistribution is after MK pays other ServicesEach AAFES Main Store will receive a ppercent ofearnings based on percent of sales to the total

Top Ranked Stores in 2009CentralFt Campbell: 32,969*Ft Hood: 25,034*Eglin AFB: 14,210Scott AFB: 13,776NAS Ft Worth: 12,138EasternFt Bragg: 26,526*Ft Belvoir: 25,747Langley AFB: 22,823Ft Hamilton: 19,586MacDill AFB: 18,217WesternSan Antonio: 52,548*Lewis/McChord: 31,794* Los Angeles AFB: 20,129March AFB: 19,614Luke AFB: 17,248PacificHickam: 7,190Elmendorf: 6,793Schofield: 6,183Yongsan: 5,175Foster: 3,707Europe/OEF/OIFHeidelberg: 4,621Grafenwoehr: 2,845 Bamberg: 2,160Lakenheath: 2,153Spangdahlem: 2,032Almost 1.5Mpaid in 2009!

Social Media

Reaching More CustomersGoal is to increase:– Awareness of online site– Military Star usage– Repeat purchasePrint Ads/TabloidsIn Store signsElectronic NewslettersTargeted customer mailingsMilitMilitaryStarSt statementt tt adsdTheater Slides/Radio adsIcons - Make it easySocial MediaSurveys

ContactsECOMSLaura MansfieldEmail – [email protected] ‐ 214‐312‐4621OnLine Mall ProgramsChris HillEmail – [email protected] – 214214‐312‐2880312 2880

Contacts214‐‐312214312‐‐XXXXHome TeamGMM & Home DecorJennifer Stinchcomb [email protected] [email protected] AppliancesChristine Stowski [email protected] FurnishingsBrian Lamoreaux [email protected] [email protected] AppliancesYolanda Thursby [email protected] [email protected] James [email protected] TeamGMM & ODLJi TrussellJimTll [email protected] MacKenzieM Ki [email protected] Jonker [email protected] goodsJosephJh KasalesK l [email protected] MallChris Hill [email protected]

Contacts214‐‐312214312‐‐XXXXS ftliSoftlinesTeamTGMM & Juvenile FurnitureJanean Baker [email protected] [email protected] Thompson [email protected] [email protected] Cordova [email protected]@ fApparel IIMartina Aos Seyfert [email protected] [email protected] fWatches / CosmeticsJohn Carmichael [email protected] [email protected] TeamGMM & ElectronicsRandy Owens [email protected] / PortablesAlleana Fuller [email protected] Moody [email protected] Curtis [email protected]

Questions?

-Accounts for 75% Cat/eCom sales-Requires EDI or ECOMS participation-Virtual Vendor-Exchange OnLine Mall. Catalogs 2 Big Books . GMM & Juvenile Furniture Jewelry Watches / Cosmetics Janean Baker 4375 Pam Thompson 6964 John Carmichael 6486 [email protected] [email protected] [email protected] [email protected] [email protected] .

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