Sari-sari stores using artificial intelligence for inventory planning are posting stronger sales, with median revenue from their top 50 products surging 79 percent, according to a new report from Filipino tech startup Packworks.
The report analyzed more than one million monthly transactions across Packworks' network of 300,000 micro-retailers. It found that store owners who adopted the AI-powered Store Insighting Project (SIP) recorded measurable revenue gains within two months.
Packworks said that better stocking of high-demand products increased the median gross merchandise value (GMV) per store from ₱187,229 to ₱335,818.
“Dinagdagan ko ang pag-order ng mga top 10 product na nasa SIP document (I increased my orders for the top 10 products identified in the SIP report),” said Elizabeth Veluz, a sari-sari store owner from Camarines Sur.
The impact became even more apparent as consumer demand shifted. The report showed a 47 percent increase in median GMV sales of seasonal products among stores using SIP data, indicating that owners were better able to anticipate buying patterns during rainy days, weekends, and other peak-demand periods.
“Nakikita rito ang mabebentang produkto, kaya makakapag-stock kami nang marami at maiiwasan ang ‘out of stock (The report helps us identify products that are likely to sell, allowing us to stock more and avoid running out of inventory),” said Lucia Bongot, a store owner from Cavite.
Store owners also used SIP insights to improve sales of slower-moving products. Median GMV sales for these items rose 96 percent, from ₱7,361.60 to ₱14,429. Some retailers actively promoted products flagged by the platform to improve inventory turnover and offset potential sales losses.
Overall, stores using SIP data recorded 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, grassroots entrepreneurs gain the power to drive their own growth,” said Andoy Montiel, Packworks chief data officer. “By equipping sari-sari store owners with insights that help them stock smarter and operate more efficiently, we are not only increasing store sales but also expanding access to technology that can strengthen the grassroots economy.”
Packworks developed the SIP project through the Startup Grant Fund Program of the Department of Science and Technology–Philippine Council for Industry, Energy and Emerging Technology Research and Development (DOST-PCIEERD), which awarded the grant in 2024 to support wider AI adoption in the country's micro-retail sector.
The company also works with ST Telemedia Global Data Centres (Philippines) and Ateneo de Manila University's Business Insights Laboratory for Development (Build).
In May 2026, Packworks and Connected Women won the Activate AI Challenge, a global initiative led by data.org and supported by Zoom. The partnership was selected as one of six awardees from more than 500 applicants and was the only Asean-based project recognized among entries from 76 countries.
The award cited the program's potential to expand economic opportunities, strengthen small businesses, and help more women participate confidently in an AI-enabled economy where technology creates jobs rather than displaces them.
“Sari-sari stores remain the economic lifeblood of our communities, and women are the backbone of this ecosystem,” said Ibba Bernardo, co-founder of Packworks.
“True innovation must be inclusive, especially when it comes to AI. With the help of ecosystem partners such as Connected Women, which ensures there is a human-in-the-loop approach, Packworks aims to deliver accessible and equitable digital tools directly to our saripreneurs. Through these efforts, we hope to unlock the full potential of grassroots retail while helping communities grow sustainably and at scale.”
Packworks said its push to bring AI tools to micro-retailers aligns with the Philippine Development Plan 2023-2028, which identifies digital transformation and emerging technologies, such as artificial intelligence, as key drivers of productivity, efficiency, and economic growth. PR
