A nationwide shortage of coins caused by the coronavirus pandemic is serving as an obstacle for many grocers as in-store visits pick up amid attempts to reopen the economy. The shortage has prompted many grocers to look for alternatives to coin change.
A national coin shortage was announced by the Federal Reserve in June and came as a result of the pandemic. The Fed noted that the coin deposits to financial institutions dropped off significantly and that the production of coins had been lessened due to safeguards put in place to protect mint employees. Non-essential businesses closing down and infection concerns drove many Americans to begin shopping online, which decreased the volume of coins being circulated. Even as businesses reopen, many are refusing cash payments due to the risk of money becoming a vector for the virus to spread.
Retailers are now being forced to look for alternatives to providing coin change due to the shortage. Kroger (NYSE: KR) is one of several retail chains that has instituted new policies to address the situation. Customers wanting to pay in cash must provide exact change, if this is not possible, customers may instead either have the change added to their loyalty card as credit towards their next purchase or may choose to donate their change to charity.
Walmart (NYSE: WMT) has also implemented similar policies. A spokesperson for Walmart stated, "Like most retailers, we're experiencing the affects [sic] of the nationwide coin shortage. We're asking customers to pay with card or use correct change when possible if they need to pay with cash."
H-E-B, a Texas-based grocery store chain, has also implemented similar measures but also encouraged consumers to help alleviate the shortage in a statement. "H-E-B is testing several strategies to buy and conserve coins so we can serve all of our customers in the way they want to shop and pay for their purchases. The public can help improve coin circulation by taking coins to their local banks or Coinstar kiosks and when paying with cash, using exact change," the company said.