IBM has been selected to modernize the digital pricing infrastructure used across U.S. military commissaries under a contract valued at up to $112 million over five years.
The contract, awarded by the Department of War’s Defense Commissary Agency, covers upgrades to electronic shelf label systems at 177 stores in the United States and deployment of new installations at 58 overseas commissaries spanning 12 countries, IBM said Wednesday. International rollout is scheduled to begin in early 2026.
The initiative focuses on enhancing in-store pricing displays to reflect price changes instantly rather than through manual updates. The modernization is intended to improve pricing accuracy, reduce labor tied to shelf updates and strengthen inventory visibility across DeCA’s global retail network.
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What Will IBM Deliver Under the DeCA Contract?
IBM will provide technical sustainment and life cycle support for the shelf label environment. That includes maintaining hardware, managing associated software platforms, delivering cybersecurity and vulnerability remediation services, and supporting the ordering system integrated into DeCA’s infrastructure. The company will also provide training and operational support for store personnel.
The upgrade will continue using Pricer shelf label technology alongside supporting operating systems and third-party components already embedded in the commissary environment.
How Does This Contract Build on Prior Commissary Modernization Efforts?
The award follows earlier IBM work tied to commissary retail technology. In 2016, the Defense Information Systems Agency awarded IBM a 10-year, $319.6 million contract to modernize the Commissary Advanced Resale Transaction System, the point-of-sale platform connecting checkout lanes, back-office functions and DeCA headquarters.
While that earlier effort focused on transaction processing and checkout systems, the new agreement centers on in-aisle digital pricing infrastructure as part of broader retail modernization across the commissary system.
“IBM is proud to continue supporting DeCA’s mission to deliver a modern, efficient shopping experience for military families worldwide,” said Susan Wedge, managing partner for U.S. federal market at IBM.
“This award underscores our commitment to innovation and operational excellence across the defense retail ecosystem,” the two-time Wash100 Award recipient added.
