Sari-sari stores using AI see 46% sales jump - Packworks report

Artificial intelligence (AI) is beginning to reshape how local sari-sari stores operate, helping small retailers make smarter decisions and improve profitability through practical, data-driven insights.

New findings from tech startup Packworks.io show that AI is no longer a distant concept for microenterprises but is becoming a tool that directly supports day-to-day store management and sales performance for neighborhood stores.

Packworks analyzed more than 300 stores in its network over a two-week period following data collection in September 2025 and recorded a 46% increase in daily gross merchandise value (GMV). This increase highlights substantial gains in overall store efficiency, resulting in a 17% rise in total sales for stores during the same period.

Packworks also found that stores that applied AI-driven recommendations earned higher revenue despite operating on 20% fewer active selling days—dropping from five to four days over two weeks. This indicates how AI can guide store owners in managing inventory, improving product mix, and planning demand more efficiently, enabling owners to maximize sales during their operating hours.

The insights come from Packworks’ analysis of sari-sari stores that accessed its Store Insighting Project (SIP) document, a personalized report that turns each store’s transaction history into actionable recommendations powered by AI. By reviewing pre- and post-performance across stores, Packworks quantified the impact of engaging with the SIP document on business outcomes for its partner stores. The analysis also showed that the increase in sales was driven by underperforming products identified by the AI tool, giving store owners insight into which stock to move to maintain operational efficiency.

Packworks’ AI-powered precision marketing tool 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 also partnered with ST Telemedia Global Data Centres (Philippines) (STT GDC Philippines) to access its AI Synergy Lab to run large-scale machine learning models, and with Ateneo’s Business Insights Laboratory for Development (BUILD) to build a comprehensive data warehouse and business intelligence tools.

"Even at this early stage of adoption, we've recorded increased sales and enhanced operational efficiency from stores by using the AI tools we've developed with support from DOST and through our collaborations with STT GDC and Ateneo BUILD. As stores learn to leverage the recommendations from the AI-driven insights they can access through SIP, microretailers can make smarter decisions that translate into higher sales and more efficient operations," Packworks Chief Data Officer Andoy Montiel said.

Packworks' latest innovation aims to complement the government's efforts in helping micro, small, and medium enterprises (MSMEs) adopt AI. While AI adoption could unlock PHP 2.8 trillion economic benefits by 2030 across sectors, a report by the Philippine Institute for Development Studies (PIDS) shows that only 14.9% of local businesses currently use AI tools. This wide gap, despite widespread computer ownership and internet access, indicates a slow rate of adoption and highlights the need for accessible solutions.

"Our mission at Packworks is to close the gap by making AI practical, accessible, and useful for the smallest retailers. Our latest innovation highlights the immense potential of how technology, especially AI, and strategic partnerships can drive sustainable growth for neighborhood stores across the Philippines," Packworks Co-Founder Hubert Yap said.

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.

For more studies and data trends insights in sari-sari stores, you may visit http://packworks.io/ or Packworks’ Facebook page to learn more.

OTHER KEY INFO:

• Packworks was born in 2018 out of a passion project by founders Bing Tan, Ibba Bernardo, and Hubert Yap, who started as motorbike buddies delivering solar panels to provinces and far-flung places across the country. During their excursions, they saw firsthand the challenges brought by limited access for sari-sari store owners and embarked on developing an application for small store businesses to have a one-app stop for all their needs.

• Launched as a solution for multinational companies with only a handful of sari-sari store partners, Packworks has rapidly expanded as a B2B platform that enables growth and success throughout all stakeholders in the supply chain ecosystem, from small sari-sari store owners to wholesalers, distributors, and renowned FMCG companies and brands. With about 75% of sari-sari stores owned by women, Packworks also works to empower female entrepreneurs.

ABOUT PACKWORKS

Packworks.io is a startup company that provides a business-to-business (B2B) platform that is easy to use, has low bandwidth, and has a light footprint that will allow sari-sari store owners to become more efficient in managing their business. Founded in 2018 and started as a solution for multinational companies in the Philippines to connect with neighborhood stores, the platform has now transformed into a way out of poverty for the millions of sari-sari store owners across the Philippines. Packworks empowers the sari-sari stores through scalable and accessible technology, with its team composed of dedicated developers, programmers, and technicians that work to put the power back into the hands of the people at the heart of Filipino communities by providing them with digital opportunities previously only available to big companies. By bringing technology-based solutions to one million Filipino sari-sari stores, Packworks is driving toward a more progressive, connected, and inclusive Philippines.