[7] For more than 100 years before the post exchange system was created, traveling merchants known as sutlers provided American soldiers with goods and services during times of war.

While intended to prevent the unscrupulous practices of sutlers, the post trader system still subjected troops to over-inflated prices and was rife with bribery and corruption.

[9] On 29 November 1880, Col. Henry A. Morrow, seeking to quell disciplinary problems resulting from troops visiting disreputable places of amusement in nearby towns, established the first American military canteen at Vancouver Barracks.

There, troops were provided newspapers and magazines, played billiards and cards, and could obtain light food and drink without leaving post.

The idea was so successful that other posts began establishing canteens across the frontier, providing troops with not only a place to socialize but obtain daily necessities at affordable prices.

With the outbreak of World War I and subsequent expansion of the U.S. Army, it became clear that the existing post exchange system was not equipped to accommodate such a large-scale effort.

After completing a review of existing exchanges, Lt. Col. J. Edwin Grose concluded that the Army would need to "become the operator of an extensive chain store system with world wide [sic] branches" to sufficiently meet the demands of a large-scale war effort.

In April 1941, an advisory committee of five prominent retail executives affirmed this notion, recommending the creation of a central organization to oversee exchange operations.

[16][17] Part of the Department of Defense, the Exchange is directed by a board of directors responsible to the secretaries of the Army and Air Force through the Chiefs of Staff.

Additionally, the Exchange has more than 1,400 quick-serve restaurants such as Subway, Qdoba, Panera, Panda Express, Burger King, Freshens, Popeyes, Taco Bell, Pizza Hut, Charleys Philly Steaks and Starbucks as well as over 3,400 concession operations.

[31] The Exchange currently operates more than 300 facilities in contingency zones in countries such as Kuwait, Iraq, Saudi Arabia, Jordan, Qatar, United Arab Emirates, Romania, Cyprus, Bosnia and Kosovo.

[17] In 2012, Tom Shull became the Exchange's first civilian director/CEO, having previously served as an executive with Wise Foods, Hanover Direct, Barneys New York and Meridian Ventures.

A West Point graduate, Shull served as an infantry company commander and held assignments at the White House and National Security Council.

[35] On 8 May 2014, Shull drafted a memorandum to the Under Secretary of Defense for Personnel and Readiness proposing that military exchanges be allowed to extend online shopping privileges to honorably discharged veterans.

[36] Shull presented the business case for the veterans online shopping benefit to the Department of Defense’s Executive Resale Board in August 2014.

[37] On 13 January 2017, the Department of Defense announced that all honorably discharged veterans would be eligible to shop tax-free online military exchanges starting 11 November 2017.

[35] On 1 January 2020, the Exchange began to grant disabled veterans, Purple Heart recipients and certain caregivers — 4.1 million Americans — in-store shopping privileges.

[39] Beginning 1 May 2021, Department of Defense and Coast Guard civilians in the continental U.S. became eligible to shop at military exchanges, and online benefits were added in October 2021.

The Exchange implemented a personal shopper program with contactless delivery at several military bases that allowed quarantined service members to order basic hygiene items, snacks and more.