SARI-SARI store owners who were able to better anticipate buying patterns during rainy days, weekends, and other peak demand periods posted stronger sales growth, according to a report released by Filipino tech startup Packworks.
The study found that stores using data-driven inventory insights recorded a 47-percent increase in median gross merchandise value (GMV) sales of seasonal products, suggesting that retailers were better equipped to stock items likely to be in demand at specific times.
The findings were based on more than one million monthly transactions across Packworks’ network of 300,000 micro-retailers nationwide.
According to the report, stores that used the company’s artificial intelligence (AI)-powered Store Insighting Project (SIP) saw measurable revenue gains within two months of adopting the platform.
Sales of the stores’ top 50 products rose significantly, with median GMV increasing by 79 percent from P187,229 to P335,818 per store.
Store owners also appeared to improve inventory management for slower-moving items. Median GMV sales of these products climbed by 96 percent, from P7,361.60 to P14,429.
This was as retailers adjusted their stocking strategies and promoted products identified by the system as underperforming.
Overall, stores utilizing SIP data recorded a 29-percent increase in median total sales and a 20-percent rise in the median number of transactions.
According to Packworks chief data officer Andoy Montiel, access to data can help small retailers make more informed business decisions. ‘When data is democratized, we give grassroots entrepreneurs the power to chart their own growth,’ Montiel said.
‘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,’ he added.
For his part, Packworks co-founder Ibrahim Bernardo said the findings highlight the continued importance of sari-sari stores in local communities.
‘Sari-sari stores remain the economic lifeblood of our communities, and women serve as the backbone of this ecosystem,’ Bernardo said.