Sari-sari store owners are increasingly turning to data-driven tools to improve inventory management and boost sales. A recent study by Packworks found that stores using artificial intelligence for inventory planning recorded higher revenues by stocking products that better match consumer demand.
Study Highlights Revenue Gains
The Philippine technology startup Packworks reported that store owners using its AI-powered Store Insighting Project (SIP) saw significant revenue gains within two months of adopting the platform. The findings were based on an analysis of more than one million monthly transactions from Packworks’ network of around 300,000 micro-retailers nationwide.
According to the report, stores using SIP increased median sales of their top 50 products by 79 percent. Gross merchandise value (GMV) rose from P187,229 to P335,818 per store. The study found that the biggest gains came from better inventory planning for fast-moving products.
Adapting to Consumer Demand
Packworks said AI-generated insights also helped retailers respond to changing consumer demand. Stores using SIP recorded a 47 percent increase in median sales of seasonal products. This suggests that owners were better able to anticipate demand during rainy days, weekends, and other peak buying periods.
“It helps us identify products that are likely to sell well, so we can increase our inventory and avoid stockouts,” said Lucia Bongot, a store owner from Cavite, in Tagalog.
Improving Slow-Moving Product Sales
The report also showed that store owners used SIP recommendations to improve sales of slower-moving products. Median sales for these items rose by 96 percent, from P7,361.60 to P14,429, as retailers adjusted inventory levels and promoted products identified by the platform.
Overall, stores that use SIP data posted a 29 percent increase in median total sales and a 20 percent increase in the median number of transactions.
“Our findings show that when data is democratized, we give grassroots entrepreneurs the power to chart their own growth,” said Andoy Montiel, chief data officer of Packworks. He said access to data-driven insights enables small retailers to stock products more efficiently and improve business performance.
Expanding AI Adoption
The SIP project was developed with support from the Startup Grant Fund Program of the Department of Science and Technology- Philippine Council for Industry, Energy and Emerging Technology Research and Development. It aims to expand AI adoption among micro-retailers.
Packworks is also working with ST Telemedia Global Data Centres Philippines and Business Insights Laboratory for Development to strengthen data-driven solutions for small businesses.
In May 2026, Packworks and Connected Women won the Activate AI Challenge, a global initiative led by data.org and supported by Zoom Communications. The project was one of six winners selected from more than 500 applicants and was the only Asean-based initiative among entries from 76 countries.
Packworks co-founder Ibba Bernardo said sari-sari stores remain a critical part of local economies and that AI should be used to create opportunities for small entrepreneurs rather than replace jobs.
The company’s efforts support the goals of the Philippine Development Plan 2023-2028, which identifies digital transformation and emerging technologies such as AI as key drivers of productivity and economic growth.
