AI-powered sari-sari stores boost top product sales by 79%, Packworks finds

Sari-sari stores using artificial intelligence to guide inventory decisions are recording substantially higher sales, according to new research from Filipino technology startup Packworks, highlighting the growing role of data-driven tools in strengthening the country's grassroots retail sector.

The report analysed more than one million monthly transactions across its network of 300,000 micro-retailers and found that stores using the company's AI-powered Store Insighting Project (SIP) achieved measurable sales improvements within two months of adoption.

Among the most notable findings was a 79% increase in median sales of stores' top 50 products. According to the report, median gross merchandise value (GMV) generated by these high-demand items rose from 187,229 pesos (US$3,100) to 335,818 pesos (US$5,600) per store after merchants began using SIP recommendations to optimise stock levels.

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For many store owners, the platform's insights directly influenced purchasing decisions.

"I increased my orders for the top 10 products identified in the SIP document," shared Elizabeth Veluz, a sari-sari store owner from Camarines Sur.

The benefits extended beyond everyday bestsellers. During periods of fluctuating consumer demand, stores using SIP data recorded a 47% increase in median GMV sales of seasonal products, suggesting improved ability to anticipate purchasing patterns during rainy days, weekends and other peak-demand occasions.

"The report helps us identify products that will sell well, so we can stock more and avoid running out," said Lucia Bongot, a store owner from Cavite.

Packworks also found that merchants were able to better manage slower-moving inventory. Median GMV sales of these products increased by 96%, as store owners used SIP reports to identify and promote items that might otherwise have remained unsold.

Overall, stores using the platform's insights recorded a 29% increase in median total sales and a 20% rise in the median number of transactions.

According to Andoy Montiel, chief data officer at Packworks, the findings demonstrate the value of making advanced analytics accessible to small business owners.

"Our findings show that when data is democratised, we give grassroots entrepreneurs the power to chart their own growth. By equipping sari-sari store owners with the insights to stock smarter and operate efficiently, we are not only boosting individual store sales but expanding access to technology to build a more resilient grassroots economy," he said.

The SIP was developed through the department of science and technology's Philippine council for industry, energy and emerging technology research and development (DOST-PCIEERD) startup grant fund programme, which awarded support to Packworks in 2024 to encourage wider AI adoption across the country's micro-retail sector.

The initiative is also supported through partnerships with ST Telemedia Global Data Centres (Philippines) and Ateneo's business insights laboratory for development.

"Sari-sari stores remain the economic lifeblood of our communities, and women serve as the backbone of this ecosystem," said Ibba Bernardo, co-founder of Packworks. "True innovation must be inclusive, especially with AI. With the help of ecosystem partners such as Connected Women who ensure that there is a human-in-the-loop, Packworks strives to deliver accessible, equitable digital tools directly into the hands of our saripreneurs, to further unlock the full potential of grassroots retail while nurturing these communities for sustainability and scale."

The company's efforts align with the Philippine Development Plan 2023-2028, which identifies digital transformation and emerging technologies such as AI as key drivers of productivity, efficiency and industry revitalisation.

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