Pentagon scraps bid to get out of the grocery business, keeps commissaries under government control

The Pentagon has scrapped an effort to get out of the grocery business after calling on the private sector for ideas on what to do with the 178 commissaries it runs on military bases across the country, including three in San Antonio and another 10 spread across Texas.

Citing “an unacceptable risk to the readiness and well-being of Service members and their families,” the Defense Department notified Congress that it had “decided not to pursue privatization” of portions of its commissary system, which has a roughly $1.5 billion annual budget.

The decision concludes a study launched in September that asked the industry for proposals on taking over or even closing “all or a portion” of the base grocery stores if commercial chains could offer the nearly 24% discount the base markets provide…

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