U.S. COIN SHORTAGE
Pick ’n Save, Metro Market customers told to avoid paying in cash
The largest grocery chain in Wisconsin is pushing customers to avoid needing change because of a nationwide coin shortage.
Kroger’s Milwaukee-based Roundy’s Supermarkets division is encouraging customers to use a credit or debit card to pay for goods or round up when paying with cash. Roundy’s owns the Pick ’n Save and Metro Market stores across Wisconsin. The company operates more than 100 stores and has two distribution centers in the state.
“In order to help alleviate the current national coin shortage, effective Wednesday, Pick ’n Save and Metro Market customers who use a manned checkout lane will be encouraged to use an alternative form of payment (such as credit/debit),” said James Hyland, vice president of communications and public affairs for Roundy’s
Customers who pay with cash can either receive a credit to their store loyalty card that can be used on future purchases, or round their total up to the next dollar to support the company’s Zero Hunger/Zero Waste Foundation.
Coin change will still be available at self-checkout lanes.
Other stores have implemented new policies to decrease the demand for coins in stores. At Festival Foods, a Wisconsin-based chain of grocery stores, the self-checkout lanes are available only for credit or debit card transactions.
Shortage being blamed on COVID-19
In mid-June, the Federal Reserve announced a nationwide coin shortage, which it blamed on the pandemic.
“The COVID-19 pandemic has significantly disrupted the supply chain and normal circulation patterns for U.S. coin,” the government said in a statement. “In the past few months, coin deposits from depository institutions to the Federal Reserve have declined significantly and the U.S. Mint’s production of coin also decreased due to measures put in place to protect its employees.”
Meanwhile, coin orders have begun to increase as regions reopen, resulting in the Federal Reserve’s coin inventory being reduced to below normal levels. “
On June 15, Federal Reserve Banks and their coin distribution locations began to allocate available supplies of pennies, nickels, dimes and quarters to depository institutions as a temporary measure. The temporary coin allocation is based on historical order volume by coin denomination and current U.S. Mint production levels.
Limits will be reviewed and potentially revised based on national receipt levels, inventories and Mint production.
Constance Nobis, director of retail market operations at Comerica Bank, said the bank is limiting what it gives to customers because its supply from the Fed has been cut by 90%.
“It’s a supply chain issue,” Nobis said. “Normally, there’s a lot of recycling. Customers bring in coin to the bank, we ship it to the Fed and we fill our order out for customers.”
In the meantime, she said, the bank is urging customers to bring in coins.
“Primarily, gas stations and party store owners are frustrated with lack of coin and we have been able to get them about 50% of what they are asking for,” Nobis said.