Sari-sari stores in the Philippines are beginning to adopt artificial intelligence (AI) to make smarter decisions and improve profitability through practical, data-driven insights.
This, as new findings from tech startup PackWorks 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.
“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.
DOST is the Department of Science and Technology, while STT GDC is ST Telemedia Global Data Centres. Ateneo’s BUILD refers to its Business Insights Laboratory for Development center.
Packworks analyzed more than 300 stores in its network over a two-week period following data collection in September 2025 and recorded a 46- percent increase in daily gross merchandise value (GMV). This increase highlights substantial gains in overall store efficiency, resulting in a 17-percent 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-percent 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.
PIA PHOTO