According to a research conducted by third-year economics and mathematics student Christina Cheng, Canadian grocers are making $3.27 million per year from penny-rounding.
In 2012 Ottawa announced its plan to phase out coppers coins, as a result, cash purchases are now rounded up or down to the nearest five-cent increment.
Christina Cheng is a young researcher at the University of British Columbia.She liked to know the real beneficiary and started to investigate in her spare time.
“Penny-rounding always becomes a guessing game,”
“It’s a fun guessing game because it might not hurt in the short run, looking at several cents, but in the long run, I wondered if this actually accumulates.” — she said.
Cheng spent 45 days to collect 18,000 prices at grocery stores. She got help from her friend and took pictures of price tags and entered the data into a spreadsheet. A simple observation found most of the prices were ending with o.98 0r …