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Retailers across the United States are facing penny shortages following the U.S. Treasury Department's decision to halt penny production in May. The U.S. Mint produced its last batch of pennies in August, leading to supply issues for several convenience stores and major chains, including Kroger and Home Depot.
Kroger has started asking customers to pay with exact change at some locations due to the shortage. According to a Kroger spokesperson, the company is assessing the impact of the Treasury's decision and encourages customers to provide exact change when using cash. Similarly, Kwik Trip has begun rounding cash transactions down to the nearest nickel in stores affected by the shortage.
The American Bankers Association reports that while approximately 250 billion pennies are still in circulation, localized supply issues have arisen due to some Federal Reserve coin terminals ceasing penny transactions. Retail industry groups are urging Congress to pass a national law allowing businesses to round cash transactions to the nearest nickel, as some states currently prohibit such rounding.
The shortage is causing concern as the holiday shopping season approaches, with retailers worried about the impact on operations. The National Grocers Association and other groups have highlighted the potential negative effects on low-income customers who rely on exact change services.