A new report from Filipino tech startup Packworks shows that sari-sari stores using artificial intelligence for inventory planning are significantly outperforming traditional operations, with top products recording a 79 percent jump in median sales.

Based on more than one million monthly transactions across roughly 300,000 micro-retailers nationwide, the Packworks report highlights how its AI-powered Store Insighting Project (SIP) is reshaping micro-retail performance within just months of adoption.

Stores using the system saw gross merchandise value rise from P187,229 to P335,818, driven by improved stocking decisions and better identification of high-demand items.

Seasonal buying patterns also became easier to anticipate. The report found a 47 percent increase in median sales of seasonal goods among users, as store owners adjusted inventory for rainy days, weekends, and other demand spikes.

AI tools also helped retailers manage slow-moving products more effectively. Sales of low-performing items increased by 96 percent, from P7,361.60 to P14,429, as owners used data insights to adjust pricing and promotions.

Overall, participating stores recorded a 29% rise in total median sales and a 20 percent increase in transactions.

“Our findings show that when data is democratized, we give grassroots entrepreneurs the power to chart their own growth. By equipping sari-sari store owners with the insights to stock smarter and operate efficiently, we are not only boosting individual store sales but expanding access to technology to build a more resilient grassroots economy,” said Andoy Montiel, chief data officer of Packworks.

The SIP platform was developed with support from the Department of Science and Technology – Philippine Council for Industry, Energy and Emerging Technology Research and Development (DoST-PCIEERD) through its Startup Grant Fund program in 2024.

The initiative also involves partnerships with ST Telemedia Global Data Centres and Ateneo de Manila University’s Business Insights Laboratory for Development, strengthening its push toward AI-driven micro-retail transformation.

The findings align with the Philippine Development Plan 2023–2028, which emphasizes digital transformation and the use of emerging technologies to improve productivity and strengthen local industries.