Sari-sari stores using AI see sales surge by 79%

Sari-sari stores leveraging artificial intelligence (AI) for inventory planning are experiencing revenue growth, seeing a 79% surge in median sales among their top 50 products, according to the latest report by Filipino tech startup Packworks.

The findings, which analyzed over one million monthly transactions across Packworks’ network of 300,000 micro retailers, show that store owners using the AI-powered Store Insighting Project (SIP) saw measurable revenue improvements within just two months of adopting the platform.

According to the report, the optimization of high-demand items drove median gross merchandise value (GMV) sales from P187,229 to P335,818 per store.

The benefits of using SIP data were evident during a period of changing consumer demand. The survey found a 47% increase in median GMV sales of seasonal products among stores using SIP reports, suggesting that store owners were better able to anticipate purchasing patterns during rainy days, weekends, and other high-demand periods.

Store owners also used the reports from SIP to better manage slower-moving products, increasing their median GMV sales by 96%, from P7,361.60 to P14,429. Some store owners also actively pushed these items identified by SIP to make up for potential sales deficits and improve inventory turnover.

Overall, stores utilizing the data recorded a 29% increase in median total sales and a 20% increase in the median number of transactions.

“Our findings show that when data is democratized, 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,” said Andoy Montiel, Packworks’ chief data officer.

Packworks’ SIP project was developed with DoST-PCIEERD’s Startup Grant Fund (SGF) Program, awarded in 2024 to support wider AI adoption in the country’s micro-retail sector. The company is also in partnership with ST Telemedia Global Data Centres, Ateneo’s Business Insights Laboratory for Development.

Packworks’ mission to bring AI into micro-retail stores aligns with the Philippine Development Plan 2023-2028, which recognizes the role of digital transformation and emerging technologies like AI in increasing efficiency and revitalizing industries and services.

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