Shortage of Penny Hit Stores: What it means to you
Somewhere between your Couch Cushions and your car’s player may be living a small treasure of lost pennies.
Those small coins (not made mostly of zinc) always had a way of disappearing. But after two centuries of circulation, the US Mint plans to retire the penny — and retailers are finding out just how much those pennies add up.
Businesses across the country suddenly reported a shortage of Pennies that changed the way money was handled at the register. At the Sheetz Stratenence store in South-Central Pennsylvania, signs inform customers that pens are in short supply and encourage other payment methods. Consumers are asked to use cash payment options, round up their donation amount or trade in 1 cent in exchange for a free drink.
Meanwhile, the KwiK tour, MidWest Lop, MidWest Consinence Store Store, announced that all cash purchases in its locations will be automatically made to the nearest five cents until a permanent legal solution is prepared.
But the biggest challenge is the lack of guidance on what marketers are doing – or expected – to do.
“The thing that makes it easier for the most wanted stores is clarification from the union level on how to fix this, because now there is not enough clarity,” now there is no clarity in the media and communication strategies in the National Association (NACS), tells money. “And because of that, retailers are faced with one of three bad decisions.”
Basically, he says, they can fall down, spin around or go insane.
Downtime can cost businesses millions each day. NACS estimates that if all convenience stores did this, the industry would lose about $1.2 million a day.
On the other hand, rotation up can create legal or regulatory risks, including problems with the food assistance program (SNAP), small quantities of products such as tobacco or milk, the accuracy of State Fuel.
The third option – Encouraging customers to switch to plastic – is also a problem because the swipe fee can exceed all the losses from circulation, making convenience stores lose part of what makes them convenient.
Why is everyone confused about pens
To be clear, the pens are in production now. This is just the beginning of what will be Shift Shift. The Ministry of Petroleum placed its final order in May for the blank metal discs used to make the single-coin Mint. When those spaces are exhausted – expected to happen in early 2026 – new pennies will no longer be created.
Authorities estimate that Penny production could save the Federal Government about $56 million each year. And there’s a downside: Some countries have already issued their own One-Cent coins, citing similar costs and efficiency concerns. But in the US, the shortage was not expected for another few months, many sellers were caught – they were hired. QUESTIONS ALONG how cash transactions will be handled without pennies in circulation – and how consumers will adapt.
To compound matters further, some American cities and states actually require merchants to have cash and give proper change.
Places like Berkeley and San Francisco in California; Washington, DC; Miami; New York City, Philadelphia; And King and Snohomishish County in Washington all have direct replacement laws. Similarly, the states of Delaware, Connecticut and Oregon require retailers to provide direct change. In these areas, rotation is not a legal option, leaving retailers to find other ways to adapt.
Leonard says several bills in Congress aim to address Penny’s retirement. For example, the COM COM COST CETS ACT would end the production of the Penny and allow cash transactions to be circulated or down to the nearest nickel.
But with legislative progress blocked due to the ongoing government shutdown, retailers are left to navigate the shortage without legal guidance.
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