Grocery stores making money on "penny rounding"

By The Canadian Press
December 18, 2017 - 6:53am

VANCOUVER —   A University of British Columbia researcher says grocery stores across Canada make just over three million dollars every year from ``penny-rounding.''

    That occurs when cash purchases are rounded up or down to the nearest five-cent increment -- a process that has been in place since the penny was phased out in Canada in 2012.

    Economics and mathematics student Christina Cheng studied more than 18-thousand prices at grocery stores and says although the loss of the penny is minor to consumers, it has added up to significant gains for grocery stores.

    The Retail Council of Canada disagrees with Cheng's findings, saying her method doesn't reflect real grocery purchases and doesn't take into account the impacts of taxes on bill totals.

(The Canadian Press)

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