The U.S. penny is officially on its way out. The Treasury has announced plans to end penny production by early 2026, marking the first major change to American coinage in decades. For grocers, this small shift in currency to penny-free checkout could bring bigger operational, pricing, and technology implications than expected.
While the impact on total sales may be minimal, the way stores handle cash transactions, price displays, and customer communication will need to evolve. Fortunately, Canada has already been down this road—and their experience offers valuable lessons for U.S. retailers preparing for a penny-free checkout.
When Canada retired its penny in 2013, grocers faced the same questions U.S. retailers are asking now:
The outcome was clear: with the right systems and clear communication, consumers adapted quickly. Rounding to the nearest nickel became standard practice for cash purchases, while card and digital payments remained precise to the cent. Most customers barely noticed the change — and retailers found that transparency was the key to trust.
Canadian grocers that proactively updated their POS systems, signage, and staff training saw the smoothest transition. They focused on consistency: the same rounding logic applied everywhere, and receipts clearly displayed both the pre-rounding total and the rounded amount. Those lessons can help U.S. grocers avoid confusion and maintain shopper confidence.
The move away from pennies highlights a fundamental truth in retail: technology readiness determines how well stores adapt to change.
Grocers using modern, flexible POS platforms — like LOC Software or ACE/Elera — are already a step ahead. These systems can be configured to automatically round totals for cash transactions while keeping digital payments exact. They also ensure consistent rounding rules across departments and locations, which is especially important for multi-store operations.
Beyond the register, back-office systems, and shelf label management can help retailers keep pricing aligned across every touchpoint. When all systems communicate seamlessly, rounding becomes an automated background process, not a customer-facing headache.
For decades, “$4.99” pricing has been a retail staple — driving perception that products are cheaper than their rounded counterparts. But in a penny-free checkout, it’s worth asking: does .99 still make sense?
Some Canadian grocers simplified pricing after 2013, moving to clean figures like $5.00 or $4.95 to avoid confusion at checkout. Others kept traditional psychological pricing, trusting rounding rules to handle the difference for cash transactions.
There’s no one-size-fits-all answer. But what’s clear is that with the right systems in place, you can create the penny-free checkout solution that works for your business needs.
One of the most effective ways to manage the penny transition and ensure a smooth penny-free checkout is through data. Modern POS systems can track rounding “gain” or “loss” across thousands of transactions, allowing grocers to ensure rounding averages out fairly for customers and stores alike.
Centralized reporting can also surface patterns — like whether certain departments or promotions are affected more by rounding rules. This kind of insight helps retailers fine-tune operations while maintaining customer trust.
Ultimately, transparency is key. Displaying pre-rounding and final totals on receipts, training cashiers to explain the process clearly, and keeping policies consistent across stores all help ensure shoppers feel confident and informed during the transition to a penny-free checkout.
The end of the penny may seem like a minor event — but for grocers, it’s another reminder of how quickly margins can shift. Those who invest in adaptable systems and thoughtful communication now will be ready not only for this change, but for the next one, too.
Retailers can prepare for transitions like this with smarter technology, reliable POS integration, and hands-on guidance that ensures consistency from store to store. Whether it’s a penny or a major system overhaul, no retailer should have to navigate change alone.
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