Sari-sari stores feel the pinch

Gina Cabrera, a sari-sari store owner in Barangay 95, Tondo, Manila, said prices in her store seemed to rise almost every week. As a result, some of her customers have started shopping at supermarkets instead, where buying in bulk helps them save more.

“Because they save more when they buy in bulk. They say prices of goods have gone down, but why can’t we feel it?” Cabrera asked in Filipino.

According to the Philippine Statistics Authority, headline inflation eased further to 1.3 percent in May, down slightly from 1.4 percent in April.

A decline in inflation was observed in most of the country’s 18 regions in May.

A recent survey by Filipino tech start-up, Packworks, found that despite the nationwide decline in inflation, prices of various goods continued to rise in sari-sari stores across the country.

The data, which analyzed more than one million monthly sales transactions from its network of over 300,000 sari-sari stores nationwide through its mobile app and business intelligence tool, Sari IQ, tracked price movements across multiple product categories from 2023 to 2025.

The analysis revealed that costs continued to climb despite a general decline in inflation, with some categories experiencing average price increases of at least 11 percent across various regions nationwide.

Key findings showed notable retail price hikes for essential items like baby oil and baby powder, which rose by 17 percent — from ₱42 in 2023 to ₱49 in 2025.

Meanwhile, the price of a 100-gram pack of a popular baby powder brand increased by 25 percent, rising from ₱40 to ₱50.

The price hikes were observed in at least five regions: Ilocos (Region I), Cagayan Valley (Region II), Central Luzon (Region III), Mimaropa (Region IV-B) and Bicol (Region V).

The study also found that 11 different SKUs in the confectionery and snacks category saw retail prices jump by at least 13 percent — from ₱18 to ₱23.

Another popular item, a 150-gram pack of a candy brand recorded a 16-percent price increase across all its variants, now at P42, up from P36 two years ago, affecting at least nine regions, including Regions I, II, III, IV-B, V, VI (Western Visayas), VII (Central Visayas) and VIII (Eastern Visayas).

Packworks chief data officer Andoy Montiel highlighted the vulnerability of sari-sari stores, noting that even a small increase in wholesale prices can directly impact what consumers pay at the counter.

“Sari-sari stores are known for their thin profit margins. While they operate as viable businesses, they also serve as extended pantries and community hubs for their neighbors. Even a slight increase in wholesale prices reveals how vulnerable micro-retailers are to cost shifts upstream.

“This creates a ripple effect, especially in low-income communities where these stores are the primary source of daily essentials,” Montiel said.

The upward price trend stands in contrast to the declining national inflation rate.

In 2023, the country’s Year-on-Year (YoY) inflation rate was 6.0 percent, which dropped significantly to 3.2 percent the following year.

It decreased further to 1.9 percent from January to May 2025, hitting a low of 1.3 percent, the lowest since November 2019.

Packworks CEO Bing Tan emphasized the need to support sari-sari stores as they navigate ongoing economic challenges.

“Sari-sari stores are more than just retail outlets, but a lifeline for millions of Filipinos. Our latest analysis reveals gaps between national macroeconomic reports and the grassroots micro-retail reality. These insights can act as early indicators to inform distribution chains and policymakers of where support and aid are most needed.”

“We hope that by sharing this timely data, we will be able to shed a brighter light on the challenges in practical pricing that our small store owners face in serving their communities,” Tan said.

Sari-sari stores serve as the primary source of daily essentials for around 94 percent of Filipinos.