2 aug 06deca/eu-ccslide 1 of 39 slides the state of 2 august 2006 heidelberg, germany defense...

2 Aug 06 DeCA/EU-CC Slide 1 of 39 Slides

The State ofThe State of

2 August 20062 August 2006Heidelberg, GermanyHeidelberg, Germany

Defense Commissary Agency, EuropeDefense Commissary Agency, Europe

Michael J. Dowling

Director


Agenda

• OverviewOverview

• CDCsCDCs

• SalesSales

• ConstructionConstruction

• TransformationTransformation


Area of Responsibility


Surroundings

• Force Protection Condition Bravo+Force Protection Condition Bravo+– Higher in some locationsHigher in some locations

• Deployments & redeployments continueDeployments & redeployments continue

• Family stress levels up with separationsFamily stress levels up with separations

• Sense of anxiety over futureSense of anxiety over future


Where We Are Today

• Commitment from business partnersCommitment from business partners

• Customer satisfaction ratings at all time highCustomer satisfaction ratings at all time high

• Increased variety & selectionIncreased variety & selection

• Shopping savings over 30%Shopping savings over 30%

• Averaging 98% to 99% in-stock ratesAveraging 98% to 99% in-stock rates

• Culturally diverse workforceCulturally diverse workforce

• Supporting over 40 American embassiesSupporting over 40 American embassies

• Employee turnover on the riseEmployee turnover on the rise


Typical DeCA Europe Patron

• Junior enlisted service member and spouseJunior enlisted service member and spouse

• Household 3 to 4 peopleHousehold 3 to 4 people

• Lives on base or within 12 miles of commissaryLives on base or within 12 miles of commissary

• Averages 5 visits per monthAverages 5 visits per month

• Spends around $500/moSpends around $500/mo


CDCs

• GermersheimGermersheim– 710K SF warehouse space710K SF warehouse space

– 275+ employees275+ employees

• KaiserslauternKaiserslautern– 125K SF125K SF


• LakenheathLakenheath– 58K SF58K SF


• MarktundkuehlhallenMarktundkuehlhallen Mannheim Mannheim– Commercial storageCommercial storage

- Up to 3,000 pallets for freeze overflowUp to 3,000 pallets for freeze overflow


Capacities

• All CDCs at or near thresholdAll CDCs at or near threshold

• Slotting & racking continue to be fully utilizedSlotting & racking continue to be fully utilized

• Seasonal & holiday items max out operationsSeasonal & holiday items max out operations

• Line items carried remain relatively steadyLine items carried remain relatively steady


CDC Statistics

CDC-G CDC-K CDC-L RCMPPIn-Stock % 99.2 99.0 99.3 99.9

CDC Cases/CMPP Lbs Shipped

826K 417K 124K 1.21M

Inv EOM ($) 33.2M 9.3M 3.1M 1.2M

Inv/Sales Ratio 1.87 0.77 1.17 0.34

Line Items 7,821 1,638 6,777 123

Containers Unloaded

625 386 68 57

Detention ($) 0 0 0 0

End of June 2006


Downrange Support

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

AAFES Kuwait AAFES Iraq

FY02

FY03

FY04

FY05

FY06 thruJune

$ Sh

ippe

d (0

00's

)


Sales Trend

DeCA Europe

360

380

400

420

440

460

480

500

FY01 FY02 FY03 FY04 FY05 FY06*

In $

M

*Projected*Projected


Total Region Sales FY06 vs. FY05

25

30

35

40

45

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

FY05 FY06

In $

M

Down 5.3% thru June vs. last yearDown 5.3% thru June vs. last yearDown 5.3% thru June vs. last yearDown 5.3% thru June vs. last year


Store Sales Only

FY06 vs. FY05

25

30

35

40


FY05 FY06

Sal

es in

$M

S

ales

in $

M


Calendar Days Calendar Days


Customer Count ComparisonFY06 vs. FY05

500

600

700

800

900

1000

1100


FY05 FY06

Co

un

t (0

00)

Co

un

t (0

00)



Store Sales By Location

• 48.5% of sales at Army locations48.5% of sales at Army locations– 63% of our stores are on Army posts63% of our stores are on Army posts

• 39.9% at Air Force39.9% at Air Force– 28% on Air Force bases28% on Air Force bases

• 11.6% at Navy*11.6% at Navy*– 9% on Navy installations9% on Navy installations

*Includes sales to NEXMARTs*Includes sales to NEXMARTs


Ranking Highest Volume Stores112233445566778899

101011111212131314141515

RamsteinRamsteinRAF LakenheathRAF LakenheathVogelwehVogelwehHeidelbergHeidelbergNaplesNaplesWiesbadenWiesbadenAvianoAvianoHanauHanauWürzburgWürzburgMannheimMannheimPatch BarracksPatch BarracksBitburgBitburgVicenzaVicenzaSigonellaSigonellaChiévresChiévres


Current Major Projects

COMMISSARY DESCRIPTION COST $(M) STATUS

Grafenwöhr, GE Replace 14.7 Est. Completion

Apr 07

NS Rota, SP Replace 11.3 Est. Completion

Jul 07


Grafenwöhr Floor Plan

• Store 47K SF; sales floor area 27.3K SFStore 47K SF; sales floor area 27.3K SF• Enlarged departments throughoutEnlarged departments throughout


Rota Floor Plan



Future Major Projects

FY PROGRAM COMMISSARY DESCRIPTION

COST $(M) STATUS

07 Chiévres AB,

BE Replace 15.4 In Design

07 Camp Darby (Livorno), IT

Replace 7.5 In Design

08 Ramstein AB,

GE Replace 29.2

Design on Hold


Chiévres Floor Plan

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Livorno Floor Plan

• Store 25K SF; sales floor area 10.9K SF• Enlarged departments throughout


Ramstein Floor Plan



Major Projects For Out Years2008 and Beyond

COMMISSARY DESCRIPTION COST $(M) STATUS

Spangdahlem AB, GE

Replace TBD Scope Requirements

Identified

Ansbach, GE Replace 8.3 Scope Requirements

Identified

Wiesbaden, GE Replace 16.8 Scope Requirements

Identified Panzer

Kaserne, GE Replace TBD

Scope Requirements Not Yet Identified

Bottom Line: Subject to the military services' emphasis


Minor ConstructionSustainment Program

LOCATION DESCRIPTION COST $(K)

FY PROGRAM PHASE

Wiesbaden, GE

Equip/Dock/ M&R

2,500 04 Completed

Jan 06 RAF Fairford,

UK Equip/Floor/

M&R 2,200 04

Completed Apr 06

RAF Menwith Hill, UK

Equip/Expand Sales Area

3,700 05 In Solicitation

RAF Alconbury, UK

Equip/Floor/ M&R

TBA 07 In Design


Estimating* Transformation**

by Zone

2006 to End State2006 to End State

*Timeline moving target - event driven - subject to change**Installation closure details released when unit transfers & dates are firm


UK Zone 2006 and Beyond

Portugalthe Azores

(Terceira Island)

9 Commissaries

RAF Menwith HillRAF Menwith Hill

RAF CroughtonRAF Croughton

RAF FairfordRAF Fairford

RAF LakenheathRAF Lakenheath

RAF MildenhallRAF Mildenhall

RAF AlconburyRAF Alconbury

England

Lajes FieldLajes Field

Expected To Remain Stable

the Netherlands

Belgium

SchinnenSchinnen

ChiévresChiévres

SalesSalesFY05: $78MFY05: $78M

Est. End State: $74.3MEst. End State: $74.3M

SalesSalesFY05: $78MFY05: $78M

Est. End State: $74.3MEst. End State: $74.3M


Med Zone 2006 and Beyond

Italy Turkey

Egypt

Saudi Arabia

Spain

12 Commissaries

AvianoAvianoVicenzaVicenza

LivornoLivorno

NaplesNaples

SigonellaSigonella

RotaRota

MineoMineo

AnkaraAnkara

IncirlikIncirlik

IzmirIzmir

CairoCairo

RiyadhRiyadh

Expected To Remain Stable

SalesSalesFY05: $89.9MFY05: $89.9M

Est. End State: $88MEst. End State: $88M


Est. End State: $88MEst. End State: $88M


Bamberg Zone Beginning FY06

Germany13 Commissaries

Bad KissingenBad Kissingen BambergBamberg

SchweinfurtSchweinfurtGrafenwöhrGrafenwöhr

WürzburgWürzburg

AnsbachAnsbach

VilseckVilseck

HohenfelsHohenfels

GarmischGarmisch

GiebelstadtGiebelstadt KitzingenKitzingen

IllesheimIllesheim

KeflavikKeflavik




Bamberg Zone End FY09


Bad KissingenBad KissingenBad KissingenBad Kissingen BambergBamberg

SchweinfurtSchweinfurtGrafenwöhrGrafenwöhr

WürzburgWürzburgWürzburgWürzburg

AnsbachAnsbach

VilseckVilseck

HohenfelsHohenfels

GarmischGarmisch

GiebelstadtGiebelstadtGiebelstadtGiebelstadt KitzingenKitzingenKitzingenKitzingen

IllesheimIllesheim

KeflavikKeflavikKeflavikKeflavik

SalesSalesEst. FY09: $55MEst. FY09: $55M



Bamberg Zone End State


Bad KissingenBad KissingenBad KissingenBad Kissingen BambergBambergBambergBamberg

SchweinfurtSchweinfurtSchweinfurtSchweinfurtGrafenwöhrGrafenwöhr

WürzburgWürzburgWürzburgWürzburg

AnsbachAnsbach

VilseckVilseck

HohenfelsHohenfels

GarmischGarmisch

GiebelstadtGiebelstadtGiebelstadtGiebelstadt KitzingenKitzingenKitzingenKitzingen

IllesheimIllesheimIllesheimIllesheim

KeflavikKeflavikKeflavikKeflavik

SalesSalesEst. End State: $35.7MEst. End State: $35.7M



Ramstein Zone Beginning FY06


Idar-ObersteinIdar-ObersteinNeubrückeNeubrücke

BaumholderBaumholder

RamsteinRamstein SembachSembach

VogelwehVogelweh

MannheimMannheim

HeidelbergHeidelberg

KelleyKelley

PatchPatch

PanzerPanzer




Ramstein Zone End FY09


Idar-ObersteinIdar-ObersteinNeubrückeNeubrücke

BaumholderBaumholder


VogelwehVogelweh

MannheimMannheim

HeidelbergHeidelberg

KelleyKelley

PatchPatch

PanzerPanzer

SalesSalesEst. FY09: $136.1MEst. FY09: $136.1M

SalesSalesEst. FY09: $136.1MEst. FY09: $136.1M


Ramstein Zone End State


Idar-ObersteinIdar-ObersteinIdar-ObersteinIdar-ObersteinNeubrückeNeubrückeNeubrückeNeubrücke

BaumholderBaumholderBaumholderBaumholder


VogelwehVogelweh

MannheimMannheimMannheimMannheim

HeidelbergHeidelbergHeidelbergHeidelberg

KelleyKelley

PatchPatch

PanzerPanzer




Wiesbaden Zone Beginning FY06


GießenGießen

Bad NauheimBad Nauheim

SpangdahlemSpangdahlem GelnhausenGelnhausen

BitburgBitburg

DarmstadtDarmstadt

BüdingenBüdingen

HanauHanau

BabenhausenBabenhausen

WiesbadenWiesbaden

McCullyMcCully

DexheimDexheim




Wiesbaden Zone End FY09


GießenGießenGießenGießen

Bad NauheimBad NauheimBad NauheimBad Nauheim

SpangdahlemSpangdahlem GelnhausenGelnhausenGelnhausenGelnhausen

BitburgBitburg

DarmstadtDarmstadtDarmstadtDarmstadt

BüdingenBüdingenBüdingenBüdingen

HanauHanauHanauHanau

BabenhausenBabenhausenBabenhausenBabenhausen

WiesbadenWiesbaden

McCullyMcCully

DexheimDexheim




Wiesbaden Zone End State


GießenGießenGießenGießen

Bad NauheimBad NauheimBad NauheimBad Nauheim

SpangdahlemSpangdahlem GelnhausenGelnhausenGelnhausenGelnhausen

BitburgBitburg

DarmstadtDarmstadtDarmstadtDarmstadt

BüdingenBüdingenBüdingenBüdingen

HanauHanauHanauHanau

BabenhausenBabenhausenBabenhausenBabenhausen

WiesbadenWiesbaden

McCullyMcCullyMcCullyMcCully

DexheimDexheimDexheimDexheim




In Summary

• Beginning 2006Beginning 2006– 57 commissaries57 commissaries

• By end 2006By end 2006– Close Bad Kissingen, Keflavik, Kitzingen, Close Bad Kissingen, Keflavik, Kitzingen,

Giebelstadt & BabenhausenGiebelstadt & Babenhausen

• Forecast reach end state around 2012Forecast reach end state around 2012– 35+% fewer stores35+% fewer stores

• Project end state sales at 70+% current businessProject end state sales at 70+% current business

2 aug 06deca/eu-ccslide 1 of 39 slides the state of 2 august 2006 heidelberg, germany defense...

Documents

sf sales floor area

holdchivres floor planstore

grafenwhr floor planstore

mstatus07chivres ab

design08ramstein ab

line items7

beyondbottom line

operationsline items