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The Army & Air Force Exchange Service at 130: A Legacy of Service

On July 25, 2025, the Army & Air Force Exchange Service (AAFES) will proudly mark its 130th anniversary, an occasion to celebrate its unwavering commitment to those who serve in the U.S. military. Since its inception, AAFES has evolved significantly, continually adapting to the needs of military personnel across the globe.

A Historic Beginning

The foundations of AAFES were laid in 1895 when the United States Department of War issued General Orders No. 46, which mandated the establishment of post exchanges (PXs). These establishments served as a centralized hub for soldiers to purchase necessities and conveniences that were often overpriced by traveling merchants. As the U.S. prepared for World War II, the operational scope of these exchanges expanded; by 1941, the Army Exchange Service was officially recognized. The transformation continued, and in 1947, following the Air Force's establishment, the service was renamed the Army & Air Force Exchange Service.

A Specialized Mission

Operating as a non-appropriated fund instrumentality of the Department of Defense, AAFES generates its revenue through sales, which it reinvests into serving military families and communities. Over the years, AAFES has been crucial in supporting troop morale and welfare during significant military campaigns, including World War II, Korea, Vietnam, and the Operation Desert Storm and Iraqi Freedom missions.

With a presence in over 30 countries and territories, AAFES provides a vast array of services that enhance the quality of life for service members and their families. Among other offerings, these include name-brand restaurants, health services, and convenience stores. The Exchange Credit Program, authorized in 1979, was designed to shield military families from predatory lending practices, further emphasizing its role in supporting the community.

Economic Impact

The MILITARY STAR® card has significantly benefitted AAFES shoppers, reportedly generating over $470 million annually through unique savings and incentives for military personnel. This economic support has allowed AAFES to bolster military readiness and security while providing essential items at competitive prices.

Tom Shull, the Exchange Director/CEO, describes the Exchange’s benefit as a “virtuous circle,” which both serves military members and helps fulfill critical operational needs. He underscores the importance of continuously improving services to meet the evolving demands of military life.

Looking Ahead

In the past decade alone, AAFES has contributed more than $15 billion in value to military communities, significantly enhancing programs focused on improving members' day-to-day lives. As the service reflects on its storied past, there is a clear commitment to maintaining its efforts for another 130 years.

In addition to providing essential goods and services at PXs, BXs, and through ShopMyExchange.com, AAFES is poised to increase its support for military families even further, reinforcing its dedication to those who defend the nation.

To commemorate its remarkable journey and ongoing mission, an interactive timeline showcasing AAFES’s rich history is available for those who wish to delve deeper into its impactful legacy.

As the 51st largest retailer in the United States, AAFES stands as a testament to what dedicated service can do for military families, continuously striving to make life better for service members and their loved ones. From it's humble beginnings to today's extensive network, the journey of the Army & Air Force Exchange Service is not just about retail but about fostering a community of support, empowerment, and respect for those who service our nation.