U.S. retailers face challenges with exact change, signaling a possible penny phaseout due to high production costs.

Retailers across the U.S. are reporting growing difficulties providing exact change, signaling a potential shortage of the penny. Though not officially phased out, the coin costs more to produce than its face value, prompting discussions about elimination similar to Canada, New Zealand, and Australia. Despite its cultural significance tied to longstanding sayings and its 1909 debut as the first U.S. coin with a presidential portrait, the penny’s practical use is declining. Retailers are beginning to adapt for a future without pennies, reflecting a broader trend toward eliminating low-value coins due to cost inefficiencies.