Doing Business with the Veteran’s Canteen Service

Presented by

Lori Lee, Assistant Chief Merchandising Officer

Focus Today

• FOUNDATION

• ORGANIZATION

• STRATEGIC APPROACH

• BUSINESS REVIEW

• OPERATING RESULTS

• RELEVANCE TO VA

• HOW YOU CAN BECOME PART OF THE VCS

U.S.C. Title 38

Mission: Provide Articles of Merchandise and Services

at Reasonable Prices:

- Veterans

- Hospitalized and/or Domiciled

- Enrolled in VA Healthcare

- VA Employees/Volunteers

- Visitors

- Families

FOUNDATION

Public Law #636, 1946

OrganizationMISSION STATEMENT:

To provide America’s Veterans, enrolled in VA’s Healthcare System, their

families, caregivers, VA employees, volunteers, and visitors, reasonably priced

merchandise and services essential to their comfort and well-being.

VISION STATEMENT:As an integral part of the VA community, be an efficient, innovative,

customer-driven, environmentally friendly organization consistently delivering

merchandise and services of exceptional quality and value by a knowledgeable,

friendly, and enthusiastic team that takes pride in our mission.

CORE VALUES:

Integrity Commitment Advocacy Respect Excellence

Core Business Lines- Retail Stores - Vending Services

- Cafes/Coffee Shops - Specialty Services

180 PatriotStore Locations

180 PatriotCafe Locations

111 Coffee Shops

180 PatriotMart Concession Locations

93 PatriotVision Optical Shops

81 PatriotClips Barber Shops

97 CBOCs with PatriotExpress Vending and/or Coffee Shops

1 PatriotStoreDirect Special Order Call Center

1 All Services Exchange Online and Catalog

3,812 PatriotExpress Vending Machines

We OfferBright Clean Stores

Reasonable Prices/Assortments

Healthy Foods

Friendly Associates

1) Value: Offer quality merchandise and food at competitive prices

2) Health: Provide products and services to maintain the health of Veterans, Caregivers, Medical Center Staff and Visitors.

3) Wellness: Promote options to enhance the quality of life.

7

Surveyed 95 Canteens from

all Regions & all Classes

• 44% of customers are Veterans

• 62% between the age of 30 and 60.

• 63% of male customers are Veterans.

• 56% of customers are non-Veterans

• 67% between the age of 30 and 60.

• 79% are female with 74% between the ages of 30 - 60.

PatriotStore Demographic Survey Results

9

PatriotStore Sale Events

Focus on Made in USA:

Made in USA Marketing

Highlight “Made in USA”

products in Sales Flyers

Plan-o-grams designate Made

in USA items

Growth in Made in USA

• Increase domestic SKU counts

in key categories

Looking to Source More

• Soft Lines and Footwear

• Military10

• Healthy Choices

• Cash Security

• Emphasis on Holidays & Weekends

11

• Nutritional Information

• Clean Machines

• Serviced Machines

• Upgraded Technology

− Veteran Owned Business Opportunity

− Kiosks Provide Enhanced Appearance

− Presents Best Selections and Assortments

− Your best opportunity 12

Concession Kiosks

Benefits to our Veteran Patients…

13

Savings up to 50% from other retail optical shops

On-the-spot free adjustments by the Optical Vendor

Eligible Veterans may purchase upgrades or add-ons at time of purchase

More frame choices…over 200 current styles to choose from

• Special Order Program that

delivers directly to

customers.

• National branded products

such as: Computers, Tires,

Major Appliances, Power

Tools, Lawn Equipment,

Shoes, electronics and more.

14

Save Time, Save Money… It’s

One Stop Shopping!

Building Partnerships Together

To Serve Our Veterans

VETERANS CANTEEN SERVICE

WE GIVE BACK

16

Every $ of Profit Returned to VA Medical Centers

• $135.1M Renovations/Equipment

• $47.2M Promotional Funds

• $75.9M Unprofitable Canteens

17

Since 1991

5% of Sales ($5.1B)

19

VA/VCS Partnership/Veteran Homelessness

• $500K Committed

22

• $20 Coupon to Veterans being placed into housing

• Beds for Vet’s / Move In Kits

• Employment opportunities –both with VCS/our vendor partners

• Donation opportunities – VCS facilitate donations from our vendor partners

Disaster Relief Assistance- Provide Essential Services

- Secure Emergency Products

- Activate Supply Chain

- Secure Vendor Support

- 2 Mobile Response Units

23

HOW DO YOU

BECOME OUR

PARTNER?

24

PatriotStore

Submit samples for review to VCS Central Office.

EDI (electronic data interchange) Compatible.

Scannable UPC’s

Ability to Drop Ship to each Canteen Location.

VCS contact is Lori.Lee@VA.GOV.

25

PatriotStoreDirect (1-800 Special Order)

Submit Samples or Business Proposals to VCS Central Office.

EDI (electronic data interchange) Compatible.

Ability to Drop Ship to each Canteen Location or Customer’s Home.

Average Price Point per Transaction is $150.

• Price Points under $50 must be Veteran Centric items.

VCS Contact is Jacqueline.Cannon@VA.GOV. 26

PatriotMart Best way for a new or small business to get started with the

VCS.

Veterans are encouraged.

Farmer’s Markets are encouraged.

Concessionaires must follow VCS Presentation and Customer Service Standards.

No services can be sold (insurance, club memberships, buying gold, etc…)

VCS contact is the local canteen chief

Email Michelle.Forbes@VA.GOV with specific location requests

27

Business 2 Business

Promotional items

2014 - $498K (at cost)

2015 proj +$750K

• Purchased by Medical Centers, Canteens and other VA entities

• Everything from key chains to clothing to backpacks

• Also handles all the memorabilia for the Rehabilitation games and VCS Special Events

Email Chris at business2business@va.gov28

THANK YOU

29