Could it be the end for the British penny?

07:18 16 July 2009

After more than 1,000 years, a change in spending habits could lead to the death of the British penny, according to a new study.

The 99p culture is no longer a dominant part of the retail industry, with stores giving up on trying to convince shoppers that items are cheaper by ending the price with 99p.

Instead, 'rounding the pound' is the new trend with all products - from food and clothes to household essentials.

Dr David Lewis of researchers Mindlab International said: "As shoppers have become more sophisticated they have seen through 99p deals.

"They round it up in their heads anyway and are not interested in getting a penny change."

High street stores such as Poundland and Poundzone have been thriving in the recession which has even encouraged the likes of Tesco to open their own "pound shop zones"

But the growth of these shops means more places no longer have any need for pennies.

The death of the penny may also lead to charities losing out, with customers being less likely to donate their small change.

Book shop owner, Melanie Carroll, told Lincoln's local news that the money her shop donates to charity "comes from people's change".

She believes that rounding the pound will effect her collections dramatically, saying: "I don't think that, if we rounded things up, people are generous enough to start giving 20 pence pieces."