Filipino household spending at sari-sari stores declines amid easing inflation

Filipino household spending at sari-sari stores declines amid easing inflation
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A RECENT study by tech startup Packworks revealed that Filipino households reduced their monthly spending at sari-sari stores in 2024, despite a significant decrease in the country’s inflation rate.

Average monthly spending fell to P689, the lowest in two years, marking an 11.8 percent decline from P781 in 2023 and a 13.9 percent drop from P800 in 2022.

The study, which analyzed over one million monthly transactions across more than 300,000 sari-sari stores nationwide using Packworks’ Sari IQ analytics platform, suggests a shift in consumer behavior.

Packworks chief data officer Andoy Montiel attributed the decline to a growing preference for “tingi” purchasing, where consumers buy smaller quantities more frequently to manage limited budgets.

While spending per visit decreased, the frequency of store visits increased. In 2024, the average number of monthly transactions per consumer rose to 18 up from 15 in 2023.

The Ilocos Region saw the most significant decrease in average monthly spending (31 percent), despite a low annual average inflation rate of 2.1 percent in 2024. The National Capital Region and Eastern Visayas followed with declines of 28 percent and 25 percent, respectively. In contrast, Calabarzon and Mimaropa reported higher average monthly spending, attributed to their strong economic performance.

The Philippine Statistics Authority reported that the country’s average inflation rate for 2024 was 3.2 percent, down from six percent in 2023.

Packworks chief executive officer Bing Tan emphasized the crucial role of sari-sari stores as indicators of broader economic trends. He said that these micro-retailers offer valuable insights into consumer behavior and that understanding these patterns is essential for developing measures to ensure economic benefits reach all sectors of society. / KOC

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