What's Happening?
Tom Shull, the longest-serving director in the 131-year history of the Army and Air Force Exchange Service (AAFES) and its first civilian leader, has retired after 14 years. During his tenure, Shull significantly transformed AAFES, expanding online exchange
benefits to all honorably discharged veterans and in-store shopping for service-connected disabled veterans. He also reduced AAFES's debt from $2.4 billion to zero, increased customer satisfaction to 95%, and navigated the organization through the COVID-19 pandemic. Shull championed the expansion of name-brand choices in stores and focused on meeting the evolving needs of military customers, including deployed troops. Brad Bingham, formerly deputy director and chief financial officer, will succeed Shull as the new director and CEO.
Why It's Important?
Tom Shull's leadership at AAFES has had a profound impact on the quality of life and financial well-being of millions of U.S. military personnel, veterans, and their families. By expanding shopping benefits, AAFES has provided tax-free access to goods and services for a significantly larger veteran population, generating over $700 million in sales from online veteran accounts alone. The elimination of $2.4 billion in debt has strengthened AAFES's financial position, allowing it to contribute substantial dividends—approximately $3.4 billion since 2012—to military community quality-of-life programs. This financial stability and expanded reach ensure that AAFES can continue to support service members, particularly in remote and deployed locations where commercial retailers may not operate, and provide essential services without relying on taxpayer dollars.
What's Next?
Brad Bingham, who has worked with Shull for 14 years, will take over as the new director and CEO of AAFES. Bingham is expected to continue the positive momentum established under Shull's leadership, focusing on the core customer base of service members and their families. The organization will likely maintain its commitment to providing essential products and services, supporting quality-of-life programs, and adapting to the evolving needs of the military community. AAFES will also continue its efforts to hire military spouses and veterans, a key initiative under Shull, and maintain its operations supporting deployed troops globally. The transition aims to ensure continuity in AAFES's mission to serve those who serve.
Beyond the Headlines
Shull's tenure at AAFES highlights the critical role that military exchange systems play in supporting the broader military community, extending beyond active-duty personnel to include veterans. His efforts to expand benefits to veterans underscore a growing recognition of their lifelong connection to military service and the importance of providing ongoing support. The resistance to privatization efforts also emphasizes the unique mission of AAFES, which prioritizes service to military members over commercial profit motives. This includes providing goods at cost in deployed areas, offering school lunches at DoD schools overseas, and maintaining a robust employment program for military spouses and veterans. The success of AAFES under Shull demonstrates a model where a government-affiliated entity can operate efficiently and profitably while delivering significant social benefits to a specific population.
