AI tool boosts ‘sari-sari’ store sales by 46%
A sari-sari store seller using Packworks’ AI-powered insight tool. — Photo from Packworks
MANILA, Philippines — Artificial intelligence (AI) is helping “sari-sari” stores increase their sales by nearly half while operating fewer days, according to a new study by tech startup Packworks.
In a two-week study involving more than 300 sari-sari stores, Packworks found that those using AI-generated recommendations increased their daily gross merchandise value by 46 percent and total sales by 17 percent.
The gains were recorded even when the sari-sari stores operated on 20 percent fewer days.
“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,” Packworks says.
READ: Filipinos spent less at sari-sari stores in 2024, study says
Insighting project
The study examined stores that used Packworks’ Store Insighting Project (SIP) document.
This AI-powered tool analyzes store transaction data and provides recommendations, such as which products are underperforming, which to prioritize and when to restock.
“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 says.
READ: PH firms challenged to master ‘insighting’
Startup tool
The tool was developed under the startup grant fund program of the Department of Science and Technology and the Philippine Council for Industry, Energy and Emerging Technology Research and Development.
Packworks has also partnered with ST Telemedia Global Data Centers to apply large-scale learning models. It also teamed up with Ateneo’s Business Insights Laboratory for Development to build a data warehouse and business intelligence tools.
READ: Startup raises $2M to boost sari-sari store platform
“Our mission at Packworks is to close the gap by making AI practical, accessible, and useful for the smallest retailers,” Packworks co-founder Hubert Yap says. INQ
