Navy Counters Bates Criticism With Own Survey of Store Prices

In what has become an escalating battle of price-comparison surveys, the Navy has conducted its own review of a local exchange store and found that prices there amount to a nearly 30% savings for military personnel.

In recent weeks, Rep. Jim Bates (D-San Diego) has blasted the local Navy exchange stores for what he said are bloated prices. But, based on a comparison of 87 randomly selected, common items, Navy officials said Tuesday that shoppers at the 32nd Street Naval Exchange save 28% by shopping there instead of at Target or K mart stores in Chula Vista.

“You do save substantially by shopping at the exchange and buying there on a regular basis,” said Cmdr. Doug Schamp, a Navy spokesman. “Frankly, the only thing that surprised me is that there was such a large disparity in prices--that the exchange is doing so well. Somewhere in San Diego, you could find a store with prices close to the exchange, but I don’t know where.”

However, Bates said he stands by his two staff-conducted surveys of 30 randomly selected items. One survey showed prices at the exchange to be 15% to 25% higher than those in Army and Air Force stores. The other showed prices at the Miramar Naval Air Station exchange were, on average, 4% higher than at local civilian retail stores.

“I still think we need to look at the Navy’s prices. You can manipulate those figures,” Bates said. “Even if their selected sampling is true, there should be a wider margin because the Navy doesn’t have to pay rent, liability insurance, sales tax, and there’s virtually no overhead.”

The Navy hires an independent market research firm annually to conduct its own official survey of 300 items. That survey has found that sailors save 23% by shopping at San Diego-area exchanges instead of private stores.

Congressional hearings have been scheduled for May in San Diego to discuss operating procedures at the exchanges. Bates says experts are considering whether to combine the Navy exchange with the Army and Air Force stores, which are jointly operated.

In the Navy survey, which did not include sales items, Energizer AAA batteries that cost $1.25 at the exchange went for $1.99 at Target and K mart. Anacin coated aspirin tablets that cost $5.60 at the exchange were $5.99 at Target and $6.84 at K mart. And Mennen After Shave that cost $1.69 at the exchange was $2.12 at Target and $2.32 at K mart.