US retailers left short-changed as penny production concludes

Pennies are drying up faster than retailers anticipated following President Donald Trump's decision earlier this year to halt production of the one-cent coin

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Now that the United States no longer makes pennies, there is a scramble among gas stations, fast-food chains and big-box stores to adjust prices and round cash transactions, and it could potentially eat into their profits.

Retail groups recently told Reuters that they are frustrated by the lack of guidance from the Trump administration and lawmakers, forcing them to round down to avoid angering customers and violating laws in some states - potentially costing high-volume businesses significant money.

The National Retail Federation said the dearth of pennies has hit retailers in urban and rural areas, with no clear geographic pattern. Members of some state restaurant associations have voiced concerns about penny shortages.

“Any merchant that accepts cash is grappling with this,” said Dylan Jeon, senior director of government relations with the National Retail Federation, whose members include Walmart, Target, Macy's, and Old Navy.

Some major convenience chains have already begun warning customers.

Sheetz, a family-owned convenience store, posted signs at one of its Pennsylvania stores that read: “The US Mint will no longer produce pennies, so we are short on change!” The signs encourage customers to use cashless payment options, round up purchases to support charity, or exchange $1 in spare pennies for a free self-serve drink.