The Navy Exchange Service Command (Nexcom), which operates retail stores for military members and their families, is facing declining sales due to competition from giants like Walmart, Amazon, and Target. Nexcom's stores, which provide discounted, tax-free goods and fund morale and welfare programs, have seen a 19% sales drop over 12 years and a 43% decline in dividends supporting these programs. To combat this, Nexcom has invested $20 million so far and plans to spend $80 million more on store renovations and a "Store of the Future" initiative to modernize its retail experience and better meet customer needs. Early results show improved customer satisfaction and sales growth, but the turnaround will take several more years to fully realize amid fierce retail competition.
