Base Exchange

An exchange is a type of retail store found on United States military installations worldwide. Originally akin to trading posts, they now resemble contemporary department stores or strip malls.

Etymology

Exchanges are commonly called a Base Exchange (BX) on U.S. Air Force installations, and they are referred to as a Post Exchange (PX) in the U.S. Army. Exchanges on Army and Air Force installations are run by the Army and Air Force Exchange Service (AAFES). Every exchange operated by the AAFES has been rebranded simply as an Exchange to simplify differentiation between the similar sounding BX and PX names.

U.S. Navy installations and ships use a Navy Exchange (NEX) whereas the U.S. Marine Corps use a Marine Corps Exchange (MCX) for naval and marine locations afloat and ashore.

Operations

Base Exchanges sell consumer goods and services to authorized patrons such as Active Duty, Reserve, National Guard, Retired Members of the U.S. Uniformed Services and their dependents. Other authorized patrons include Honorably Discharged Veterans certified 100% disabled by the Veterans Administration, Recipients of the Medal of Honor, Military Transition Personnel, DoD Employees when stationed outside the United States, Red Cross Personnel who are U.S. citizens assigned outside the United States with the Military Service. Authority to use these facilities is normally determined by presentation of the U.S. Uniformed Services Privilege and Identification Card, either when entering the store or when paying for goods and services.

Navy Exchange

Navy Exchange is a retail store chain owned and operated by the United States Navy under the Navy Exchange Service Command (NEXCOM). The Navy Exchange offers goods and services to active military, retirees, and certain civilians on Navy installations in the United States, overseas Navy bases, and aboard Navy ships. The Navy Exchange is a type of base exchange, but is separate from the others (AAEFES Exchange, Marine Corps Exchange, and Coast Guard Exchange).

History

The beginnings of the Navy Exchange, referred to by sailors as the “NEX,” started in the 1800s, when enterprising citizens would greet a Navy ship coming into port by sailing out to meet it in what were called “bumboats.” These merchants would sell goods to sailors, often at inflated prices and reportedly shoddy quality.

In 1896, a “canteen” was opened on the USS Indiana, purportedly to help keep the sailors’ money on the ship, and to ensure that they were receiving a fair deal. The Naval Appropriations Act of March 3, 1909 established the first official stores and commissaries on ships. This pressure on bumboat operators caused some to change tactics, and begin offering services, such as hair cuts and shoe repair, to sailors. This led to a separate type of retail operation, a “ship services store,” to be created aboard naval vessels. The two types of retail outlets were later combined to increase efficiency and save space. As retail options on ships grew, so did their shore-side counterparts. In 1946, a committee, headed by Captain Wheelock H. Bingham, recommended that the shore-side retail operations be rolled into the same bureau as the ship-based retail locations. In 1946, these recommendations led to the creation of the Navy Ship’s Store Office, the precursor to the modern Navy Exchange.