AI Helps Sari-Sari Stores Boost Sales, Packworks Finds

Sari-sari stores that have embraced artificial intelligence for inventory planning are seeing significant improvements in sales performance, according to a new report from Filipino technology startup Packworks. The company found that store owners using its AI-powered Store Insighting Project (SIP) experienced notable revenue gains after integrating data-driven inventory recommendations into their operations. The findings highlight how digital tools are helping modernize the country’s vast micro-retail sector.

The report analyzed more than one million monthly transactions across Packworks’ network of 300,000 micro-retailers nationwide. Results showed that store owners using SIP recorded measurable improvements within just two months of adopting the platform. Among the most notable outcomes was a 79% increase in median sales among their top 50 products. The gains were driven by more efficient stocking decisions and better demand forecasting.

AI boosts inventory planning

Packworks reported that median gross merchandise value (GMV) sales for high-demand products increased from ₱187,229 to ₱335,818 per store. The company attributed the growth to improved inventory optimization made possible through AI-generated insights. Store owners were able to identify fast-moving items and adjust purchasing decisions accordingly. This helped reduce stock shortages while maximizing revenue opportunities.

“Dinagdagan ko ang pag-order ng mga top 10 product na nasa SIP document,” shared Camarines Sur store owner Elizabeth Veluz. Her experience reflects how AI-generated recommendations are influencing day-to-day inventory management decisions among small retailers. By relying on data rather than guesswork, store operators can better align stock levels with customer demand. The result is improved product availability and stronger sales performance.

The benefits became even more evident during periods of fluctuating consumer demand. According to the report, stores using SIP recorded a 47% increase in median GMV sales of seasonal products. The data enabled retailers to anticipate purchasing patterns linked to rainy weather, weekends, and other peak buying periods. This allowed them to stock products more strategically and avoid missed sales opportunities.

Stronger sales and community impact

“Nakikita rito ang mabebentang produkto, kaya makakapag-stock kami nang marami at maiiwasan ang ‘out of stock,’” said Cavite-based store owner Lucia Bongot. Her experience underscores how access to real-time business intelligence can directly improve store performance. Better forecasting not only boosts sales but also enhances customer satisfaction by ensuring products remain available when needed.

The report also found that slower-moving products benefited from the AI-driven approach. Median GMV sales for these items climbed by 96%, increasing from ₱7,361.60 to ₱14,429. Some retailers actively promoted products identified by SIP as underperforming to improve inventory turnover. This strategy helped offset potential revenue gaps while maximizing the value of existing stock.

Overall, stores using SIP data achieved a 29% increase in median total sales and a 20% increase in median transaction volume. “Our findings show that when data is democratized, we give grassroots entrepreneurs the power to chart their own growth,” said Packworks Chief Data Officer Andoy Montiel. He emphasized that providing accessible insights allows small business owners to operate more efficiently and strengthen local economies.

The SIP project was developed through support from the Department of Science and Technology–Philippine Council for Industry, Energy and Emerging Technology Research and Development (DOST-PCIEERD) under its Startup Grant Fund program. Packworks also collaborates with ST Telemedia Global Data Centres Philippines and Ateneo’s Business Insights Laboratory for Development. These partnerships aim to expand AI adoption and strengthen digital transformation within the micro-retail sector.

Packworks recently gained international recognition through its collaboration with Connected Women, which won the Activate AI Challenge. The initiative was selected as one of six awardees from more than 500 applicants worldwide and was the only ASEAN-based project recognized among participants from 76 countries. The award highlights the program’s potential to create economic opportunities while ensuring technology supports workers rather than replacing them.

“Sari-sari stores remain the economic lifeblood of our communities, and women serve as the backbone of this ecosystem,” said Packworks co-founder Ibba Bernardo. He noted that inclusive innovation requires accessible digital tools that empower entrepreneurs and strengthen local businesses. As AI adoption expands, Packworks believes data-driven solutions can unlock new growth opportunities while supporting sustainable development in grassroots retail.