The Market Monitor Minding the Nation's Business
Packworks, a tech startup, reported that sari-sari stores using Artificial Intelligence (AI) registered a 46% increase in sales volume.
A Packworks study showed that AI is no longer a “distant concept” for micro enterprises. but becoming a tool that directly supports day-to-day store management and sales performance for neighborhood stores.
It analyzed more than 300 stores over a two-week period following data collection in September 2025. Packworks said sari-sari stores recorded a 46% increase in daily gross merchandise value (GMV).
The increase highlights “substantial” gains in overall store efficiency, resulting in a 17% rise in total sales during the same period.
Packworks said it found that stores that applied AI-driven recommendations earned higher revenue despite operating on 20% fewer active selling days—dropping from five to four days over two weeks.
“This indicates how AI can guide store owners in managing inventory, improving product mix, and planning demand more efficiently, enabling owners to maximize sales during their operating hours,” said the tech startup.
The insights come from Packworks’ analysis of sari-sari stores that accessed its Store Insighting Project (SIP), a personalized report that turns each store’s transaction history into actionable recommendations powered by AI.
“By reviewing pre- and post-performance across stores, Packworks quantified the impact of engaging with the SIP document on business outcomes for its partner stores,” said Packworks.
The tech startup noted that the analysis also showed that the increase in sales was driven by “underperforming” products identified by the AI tools, giving store owners insight into which stock to move to maintain operational efficiency.
Packworks said its AI-powered precision marketing tool was developed with DOST-PCIEERD’s Startup Grant Fund (SGF) Program, awarded in 2024 to support wider AI adoption in the country’s micro-retail sector.
The company also partnered with ST Telemedia Global Data Centres (Philippines) (STT GDC Philippines) to access its AI Synergy Lab to run large-scale machine learning models, and with Ateneo’s Business Insights Laboratory for Development (BUILD) to build a comprehensive data warehouse and business intelligence tools.
Packworks Chief Data Officer Andoy Montiel said with AI, micro retailers can make smarter decisions that translate into higher sales and more efficient operations.
Montiel said, “We’ve recorded increased sales and enhanced operational efficiency from stores by using the AI tools we’ve developed with support from DOST and through our collaborations with STT GDC and Ateneo BUILD.”
Packworks co-founder Hubert Yap said the startup’s mission is to “close the gap” by making AI practical, accessible, and useful for the smallest retailers.
“Our latest innovation highlights the immense potential of how technology, especially AI, and strategic partnerships can drive sustainable growth for neighborhood stores across the Philippines,” added Yap.