MANILA — Sari-sari stores leveraging artificial intelligence 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 ₱187,229 to ₱335,818 per store.
“Dinagdagan ko ang pag-order ng mga top 10 product na nasa SIP document (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 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.
“Nakikita rito ang mabebentang produkto, kaya makakapag-stock kami nang marami at maiiwasan ang ‘out of stock’ (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.
Store owners also used the reports from SIP to better manage slower-moving products, increasing their median GMV sales by 96%, from ₱7,361.60 to ₱14,429. 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 (Philippines) (STT GDC Philippines), Ateneo’s Business Insights Laboratory for Development (BUILD).
Notably this past May 2026, Packworks’ collaboration with Connected Women recently won the Activate AI Challenge, a global initiative led by data.org and supported by Zoom. Selected as 1 of 6 awardees out of 500 applicants and the only ASEAN project out of 76 countries, the award recognizes the program’s potential to further expand economic opportunity, strengthen small businesses, and help more women participate in an AI-enabled future with greater confidence and resilience where technology creates jobs and does not displace them.
“Sari-sari stores remain the economic lifeblood of our communities, and women serve as the backbone of this ecosystem,” adds Ibba Bernardo, Packworks’ Co-Founder. “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.”
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.
