Resilience shows up

Filipinos fully embraced the local proverb, “Kapag maiksi ang kumot, matutong mamaluktot” (when the blanket is short, learn to curl up), in 2024 as the latest study from Packworks showed that Filipinos navigate rising prices with resourceful purchasing habits.

Packworks’ study said the resilience is highlighted in the latest Sari IQ report which provides a snapshot of the state of the grassroots retail sector in the country.

Further, the study reveals that the sales of seasoning mix grew by 80 percent compared to the previous year, while recipe mix sales surged by 72 percent.

In addition, the seasoning mix was sold in 69 percent more sari-sari stores, while the recipe mix saw an even greater reach, expanding to 79 percent more locations.

The trends reflect the resourcefulness of Filipino households that are stretching their budgets by buying cost-effective additives to enhance cheaper ingredients sourced from wet markets.

As prices continue to rise, many Filipinos find ways to make their money go farther.

The report showed Bicol (Region V) recorded the highest sales growth this year, with over P616 million in gross merchandise value (GMV) from sari-sari store sales, moving up four positions compared to 2023.

Compared to last year, Calabarzon (Region IV-A) grew by P1.9 billion; Central Luzon (Region III), P1.02 billion; Cagayan Valley (Region II), P979 million; Ilocos (Region I), P811 million; and Central Visayas (Region VII), P695 million, remaining the top regions with the highest GMV.

“The sales growth in Bicol can be attributed to the increase in the number of sari-sari stores in our network in the region,” Andres Montiel, Packworks’ chief data officer, explained.

“Additionally, we’ve observed that rural, agriculture-based regions like Bicol remain more dependent on sari-sari stores than modern trade stores such as groceries,” he said.

Among those present at the release of the study was former Trade and Industry Undersecretary Ed Sunico, who gave the keynote address highlighting the role of sari-sari stores in the country.

“Sari-sari stores remain the fastest-growing channel compared to modern trade year-on-year, serving as an indispensable part of the sales ecosystem in the Philippines. Despite this, many stores are still operating informally, do not have access to government support and financing, and are behind in technology adoption,” Sunico said.