ARTIFICIAL (AI) intelligence is beginning to reshape the country’s micro-retail sector, boosting sales and efficiency in sari-sari stores and offering early signs of a technological shift in neighborhood retail.
New data from tech startup Packworks.io showed that stores using its AI-driven insights recorded a 46 percent increase in daily gross merchandise value (GMV) over a two-week period after data collection in September 2025, translating to a 17 percent rise in total sales.
The findings indicate that micro-retailers — long constrained by thin margins, manual inventory habits, and unpredictable demand — are now benefiting from data-guided decision-making once accessible only to larger retailers.
Packworks analyzed the performance of more than 300 sari-sari stores and found that those acting on AI-generated recommendations earned more even while operating 20 percent fewer selling days, dropping from five to four days over two weeks. The company said the results show how AI can help owners optimize inventory, improve product mix and plan demand, allowing them to maximize returns during open hours.
The insights were drawn from Packworks’ Store Insighting Project (SIP), a personalized AI-powered report that converts each store’s transaction history into recommended actions. The analysis showed that much of the sales lift came from underperforming products identified by the AI tool, helping owners push slow-moving stock and improve turnover.
Packworks’ precision marketing system was funded through DOST-PCIEERD’s Startup Grant Fund in 2024 and developed in partnership with ST Telemedia Global Data Centres Philippines, which provided access to an AI Synergy Lab for large-scale model training. Ateneo’s Business Insights Laboratory for Development helped build the company’s data warehouse and business intelligence tools.
“Even at this early stage, we’ve recorded increased sales and enhanced operational efficiency from stores using our AI tools,” Packworks chief data officer Andoy Montiel said. “As stores learn to leverage SIP’s recommendations, micro-retailers can make smarter decisions that translate into higher sales and more efficient operations.”
The push aligns with government efforts to expand AI adoption among micro, small and medium enterprises. While AI could unlock P2.8 trillion in economic value by 2030, only 14.9 percent of local firms currently use AI tools, according to the Philippine Institute for Development Studies — highlighting a large gap despite widespread device ownership and internet access. / KOC