The Penny Pinching Problem: Retailers Scramble as U. S. Stops Making Pennies

The U.S. has stopped making pennies, and retailers are struggling to adjust.

Impact on Businesses

• Gas stations, fast-food chains, and big-box stores are facing challenges with pricing and cash transactions.
• Retailers are torn: Round down to avoid complaints or risk breaking laws in some states.
• National Retail Federation reports widespread impact, from cities to rural areas.

Retailer Responses

• Sheetz: Encourages cashless payments or rounding up for charity.
• Kwik Trip: Rounds cash transactions down to the nearest nickel.
• Kroger: Still assessing the impact.

Global Precedents

• Canada and Australia have phased out their lowest-value coins.
• Rounding to the nearest five cents has cut costs and simplified cash handling.

Legal and Operational Challenges

• U.S. states with exact change laws complicate adjustments.
• Retail groups seek government guidance to avoid fines or complaints.
• Love’s Travel Stops: Covers the difference if pennies run out, a temporary fix.

Government and Economic Impact

• Treasury Department has stopped ordering blank penny planchets.
• Federal Reserve Bank sites have halted penny distribution.
• Cost savings: Ending penny minting saves about $56 million annually.
• Pennies in circulation: Approximately 114 billion, but usage is declining.

Public Opinion

• Pro-penny arguments: Helps keep prices down and supports charities.
• Anti-penny arguments: Seen as a nuisance, often stored in drawers or piggy banks.

The penny's future seems uncertain as the U.S. navigates this transition.