The Army and Air Force Exchange Service, more commonly known as AAFES or the Exchange, is a key part of military life for members of the United States Army and Air Force. Since its establishment in 1895, AAFES has played a vital role in supporting service members and their families through retail and service operations both in the U.S. and overseas.
AAFES operates as a non-appropriated fund entity of the Department of Defense. This means it runs similarly to a private business, generating aafes revenue through the sale of goods and services, which is then reinvested into the military community. This model allows AAFES to contribute significantly to Morale, Welfare, and Recreation (MWR) programs, providing additional funding for fitness centers, libraries, youth programs, and other services that enhance the quality of life for military families.
The Exchange offers a wide range of retail services, including department stores, convenience stores, gas stations, restaurants, barbershops, and even online shopping through ShopMyExchange.com. With its global reach, AAFES is present on nearly every U.S. Army and Air Force installation worldwide, often in remote or deployed locations. This presence ensures that military personnel have access to essential goods and services no matter where they are stationed, from the United States to Europe, Asia, and combat zones.
What sets AAFES apart is its commitment to providing tax-free shopping and competitive prices. Because AAFES operates on military installations, shoppers are exempt from paying sales tax. Additionally, profits made by AAFES are returned to the community, rather than being distributed to shareholders. This cycle supports a sustainable benefit that strengthens military morale and welfare over the long term.
One of the most modern advancements AAFES has embraced is the expansion of online shopping. In 2017, AAFES opened its online store to all honorably discharged veterans, extending its benefits to millions of former service members who had previously lost access after leaving the military. This move was not only a gesture of appreciation but also a strategic way to ensure continued support for current military operations.
AAFES is more than just a retailer; it is a crucial part of the military support system. Its dedication to serving those who serve makes it a unique and valued institution within the Department of Defense. From providing daily necessities to contributing to community programs, AAFES continues to uphold its mission of improving the lives of military personnel and their families around the world.