At the upscale Royal Oak Gas Station Barrel’s and Vines, posted notices urging customers to make the correct changes, or use debit or credit as much as possible.
Typically, the owner, Ken Lucia, keeps boxed coins to fill the cash register to use for change at the Barrel’s and Vines location in Woodward.
However, the COVID-19 pandemic coins are in short supply, including coins, coins, coins and coins.
The retailer gets a box of coins from the bank. However, Lucia said the bank’s supply is very low.
He said: “Our bank only allows us to buy one roll of coins at a time.” “The bank has reduced the box for issuing change.”
Lucia said that a box of quarter coins has a value of 50 rolls or 500 dollars, while a penny box has a value of 100 rolls or 50 dollars.
In mid-June, the Fed announced a nationwide coin shortage and blamed it on the pandemic.
The government said in a statement: “The COVID-19 pandemic has severely damaged the supply chain and normal circulation model of American coins.” “In the past few months, due to measures to protect employees, from depository institutions to The Fed’s coin deposits have been greatly reduced, and U.S. mint coin production has also declined. Fed coin orders from depository institutions have begun to increase. With the reopening of regions, the Fed’s coin inventory has fallen below normal levels.”
On June 15, the Federal Reserve Bank and its coin issuance locations began to temporarily allocate pennies, nickels, dimes, and quarter coins to depository institutions.
The temporary coin distribution method is based on the coin denomination and the historical order volume at the end of the depository institution and the current US mint production level. The order limit is unique in coin denominations and is the same at all Fed coin distribution locations. The limit will be reviewed and possibly revised based on national receipt levels, inventory and mint production.
Barrels and Vines is a gas station that sells beer, wine, and liquor, and has an in-house restaurant called Saroki’s Pizzeria, which also uses this change. Lucia said he began to see the coins run out in mid-April.
But now the coin shortage seems to be more serious.
Lucia said: “Some banks are more forgiving than others.”
The shortage makes it difficult for retailers.
To save coins, Lucia said he has taken rounding up or down.
He said: “I tried to change the jumpsuit and the duo, not the multiple.”
For example, if the sales price is $4.79, he will ask the customer if he minds losing a penny and rounding it up, giving them 20 cents. Or, he will round to $4.75 and give them a quarter.
Constance Nobis, Comerica Bank’s retail market operations director, said the bank restricted its products to customers because its supply from the Federal Reserve was reduced by 90%.
Nobis said: “This is a supply chain issue.” “There are usually a lot of recycling. Customers take coins to the bank, we ship them to the Federal Reserve, and then fill out orders for customers.”
Nobis said that the shortage is temporary.
She said: “As more and more banks open, they will be able to absorb these coin deposits, and the Fed will increase the size of its coinage.”
At the same time, she said, the bank is urging customers to carry coins. It is also doing centralized ordering, half-carton packaging and dosing.
Nobis said: “The owners of the main gas stations and party shops are frustrated by the lack of coins, and we have been able to get them around 50% of their asking price.”
This shortage may affect your payment methods at grocery stores and other retailers.
In most self-scanning checkouts at Meijer, retailers have temporarily switched to using only credit cards, debit cards, and SNAP/EBT cards. Self-scanning will also accept Meijer gift cards.
But customers who use cash must use the cashier to check out.
A Meijer spokesperson said: “Although we understand that this effort may frustrate some customers, it is necessary to manage the impact of the coin shortage on our stores.”
When other stores struggled with coin shortages, Joe Gappy felt lucky.
The owner of Prince Valley Market in southwest Detroit also owns coin kiosks in their stores.
Usually, Gappy packs coins from the machine, then picks them up by the armored car, takes them to the bank and deposits them in his account. Due to shortages, he has been packing coins and recycling coins for use in his shop.
Gappy said this was the first time that an armored vehicle service provider offered to buy his coins.
He said: “They just gave me a check for my change.” “Last week was $8,000.”
Sam Shina, the owner of several Imperial Fresh Markets in the Detroit metropolitan area and the Apollo Market in Detroit, also owns a slot machine, but he is still ordering coins.
On Wednesday, one of his shops was short-selling rolled coins from the bank.
Hina said: “I guess the bank does not have a quarter, a dime and a penny.”
Hina said that these stores kept more money, but he also recovered coins that were usually transferred to bank bags through slot machines.
Hina said: “This is bad for business.” “How should our business operate?” There are many uncertainties. “
USA News Today contributed to this report.
Contact food writer Susan Selasky: 313-222-6872 email@example.com. Follow @SusanMariecooks on Twitter
Read or share this story: https://www.freep.com/story/news/local/michigan/2020/07/06/detroit-area-retailers-grocery-stores-faceing-coin-shortages/5358761002/