Sari-sari stores in the Philippines that use artificial intelligence for inventory planning are seeing significant revenue growth, with median sales of top products rising by 79%, according to a new report from Filipino tech startup Packworks.
The findings are based on over one million monthly transactions across a network of 300,000 micro-retailers, highlighting how data-driven tools are reshaping grassroots commerce.
AI Tools Driving Higher Sales and Better Stocking Decisions
The study focused on Packworks’ Store Insighting Project (SIP), an AI-powered platform designed to help sari-sari store owners optimize inventory decisions based on demand patterns.
Within just two months of adoption, stores using SIP recorded notable gains:
- Median sales of top 50 products rose from ₱187,229 to ₱335,818 per store
- Seasonal product sales increased by 47%
- Slow-moving product sales nearly doubled, rising 96%
- Overall median total sales increased by 29%
- Median transaction volume rose by 20%
Better Forecasting Helps Reduce Stockouts
Store owners reported that AI-generated insights helped them better anticipate demand spikes, particularly during weekends and rainy seasons, reducing the risk of running out of fast-moving goods.
One sari-sari store owner from Cavite noted that the system helps identify best-selling products, allowing better stock planning and improved availability.
Supporting Grassroots Entrepreneurs
According to Andoy Montiel, Chief Data Officer of Packworks, the results show how access to data can empower micro-entrepreneurs.
“When data is democratized, we give grassroots entrepreneurs the power to chart their own growth,” Montiel said.
He added that improving inventory decisions not only increases sales per store but also strengthens the broader micro-retail ecosystem.
Inclusive AI Development for Micro-Retail
The SIP initiative was developed with support from the DOST-PCIEERD Startup Grant Fund, and in collaboration with organizations including:
- ST Telemedia Global Data Centres Philippines
- Ateneo’s Business Insights Laboratory for Development (BUILD)
- Connected Women
The program also recently gained international recognition after winning the Activate AI Challenge, a global initiative led by data.org and supported by Zoom, selected from over 500 applicants worldwide.
AI for a More Resilient Micro-Economy
Packworks emphasizes that sari-sari stores remain a backbone of local communities, especially for women entrepreneurs who dominate the sector.
Co-founder Ibba Bernardo stressed the importance of inclusive innovation:
“True innovation must be inclusive, especially with AI… to unlock the full potential of grassroots retail while nurturing these communities for sustainability and scale.”
Supporting National Digital Transformation Goals
The company’s efforts align with the Philippine Development Plan 2023–2028, which highlights digital transformation and AI adoption as key drivers of economic efficiency and inclusive growth.
For more information, visit Packworks.
