In 1896, a "Canteen" was opened on the USS Indiana, purportedly to help keep the Sailors' money on the ship, and to ensure that they were receiving a fair deal.
This pressure on bumboat operators caused some to change tactics, and begin offering services, such as haircuts and shoe repair, to sailors.
This led to a separate type of retail operation, a "ship services store," to be created aboard naval vessels.
[2] Today, the Navy Exchange operates much like many other major retailers, selling goods and clothing, as well as providing services such as barbering, floral arrangement, and laundry (depending on location).
On January 13 2017, the Department of Defense announced that all honorably discharged Veterans would be eligible to shop tax-free online Military Exchanges starting November 11, 2017.