Sales at sari-sari stores that use artificial intelligence have significantly increased, according to the latest report from tech startup Packworks, proving that AI is beginning to reshape how local sari-sari stores operate, helping small retailers make smarter decisions and improve profitability through practical, data-driven insights.

According to Packworks data, 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.

Packworks analyzed more than 300 stores in its network over two weeks following data collection in September 2025 and recorded a 46 percent increase in daily gross merchandise value (GMV).

The increase highlights substantial gains in overall store efficiency, resulting in a 17 percent rise in total sales for stores during the same period.

Further, Packworks 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, indicating 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. This personalized report turns each store’s transaction history into actionable AI-powered recommendations.

Project taps DoST

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.

Packworks’ AI-powered precision marketing tool was developed with the Department of Science and Technology (DoST) Startup Grand Fund Program, awarded in 2024 to support wider AI adoption in the country’s micro-retail sector.

The company also partnered with ST Telemedia Global Data Centers (STT-GDC) to access its AI Synergy Lab to run large-scale machine learning models, and with Ateneo’s Business Insights Laboratory for Development (BUILD) to build a comprehensive data warehouse and business intelligence tools.

“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.

Packworks’ latest innovation aims to complement the government’s efforts in helping micro, small and medium enterprises adopt AI.

While AI adoption could unlock P2.8 million economic benefits by 2030 across sectors, a report by the Philippine Institute for Development Studies showed that only 14.9 percent of local businesses currently use AI tools. This wide gap, despite widespread computer ownership and internet access, indicates a slow rate of adoption and highlights the need for accessible solutions.

“Our mission at Packworks is to close the gap by making AI practical, accessible, and useful for the smallest retailers. Our latest innovation highlights the immense potential of how technology, especially AI, and strategic partnerships can drive sustainable growth for neighborhood stores across the Philippines,” Packworks co-founder Hubert Yap said.