1895-1940: The Early Years
The Exchange traces its origins to 1895, when the War Department issued General Order No. 46, authorising the establishment of post exchanges on Army installations. Before this, soldiers relied on sutlers — private merchants who operated on military posts with little regulation and often exploitative pricing. The post exchange system replaced sutlers with a government-run retail operation that provided goods at fair prices and returned profits to the installation's recreation fund.
In the early decades, post exchanges were small operations selling tobacco, candy, personal care items, and basic necessities. Each installation operated its exchange independently, with little standardisation. As the Army grew during World War I, the exchange system expanded rapidly to serve the millions of soldiers in training camps and overseas deployments. The war demonstrated the critical role that retail services played in maintaining morale during extended military operations.
1941-1946: World War II Expansion
World War II transformed the exchange system from a collection of small post shops into a global retail operation. The Army Exchange Service operated stores, canteens, and mobile retail units across every theatre of war — from North Africa and Europe to the Pacific Islands. At its peak, the exchange system employed over 100,000 workers and operated in dozens of countries. The war proved that providing consumer goods and familiar comforts to service members far from home was not a luxury but a necessity for sustaining morale and combat effectiveness.