With micro-retailers and consumers aggressively stocking up before looming price hikes and delivery disruptions.
According to the latest insights from Filipino tech startup Packworks, sari-sari stores recorded a 90% surge in sales this March as global oil prices climb amid the ongoing Middle East conflict.
Based on data from over 1 million transactions via its Sari.PH Pro app, Gross Merchandise Value (GMV) across Packworks’ network of 300,000 stores reached PHP3.73 billion in March, up from PHP1.97 billion in February.
The most notable surge occurred on March 21, when GMV skyrocketed by 265%, which followed the announcement of double-digit fuel price increases on March 17.
The company told that such purchasing pattern signaled a preemptive move by store owners to secure inventory before logistical costs trickled down to retail prices.
A sari-sari store owner from Uson, Masbate, shared, “Nag-stock up kami dahil natatakot kaming maubusan ng paninda at magkaroon ng delay sa delivery mula sa mga supplier.”
(“We stocked up because we were worried about running out of supplies and possible delays in deliveries.”).
In some regions, delivery lead times have also reportedly stretched to three weeks, forcing retailers to prioritize bulk purchasing of fast-moving goods.
SHIFT IN BEHAVIOR
The study also highlighted a significant shift in grassroots consumer behavior.
Traditionally driven by ‘tingi,’ or small-quantity, daily purchases, households are now consolidating trips to offset rising transportation costs.
Average “basket sizes,” or the amount spent per visit, grew from a range of PHP337 to PHP1,097 in February to between PHP597 and PHP1,560 in March.
While spending increased, transaction volumes grew by a modest 17%, confirming that Filipinos are making fewer but significantly larger purchases.
Packworks Chief Data Officer Andoy Montiel shared, “With growing uncertainty and rising oil and commodity prices, our data suggests that sari-sari store owners are proactively adjusting their purchasing strategies. Larger basket sizes and increased inventory levels indicate a shift toward preparedness for potential supply disruptions and rising costs.”
This trend was evident across regions, with the Cordillera Administrative Region (CAR) posting the highest increase in basket size at 101.7% (PHP773 to PHP1,560).
That was followed by the National Capital Region (NCR) at 85% (PHP396 to PHP733) and the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) at 80.2% (PHP495 to PHP892).
Products with highest sales included cigarettes, detergent, gin, powdered coffee, and chips and dips.
Cigarettes led with an increase of around PHP234 million, followed by detergent at PHP116 million, gin at PHP66 million, powdered coffee at approximately PHP55 million, and chips and dips at PHP45 million.
Other essential goods such as soda, biscuits, powdered milk, and canned items also posted notable gains, reflecting heightened household stocking activity.
Packworks Chief Platform Officer Hubert Yap highlighted, “As the backbone of local communities, sari-sari stores continue to demonstrate resilience in times of disruption. However, they remain highly vulnerable to price fluctuations and logistical challenges, highlighting the need for continued support.”
Packworks was launched in 2018 as a solution for multinational companies with only a handful of sari-sari store partners.
Since then, it has rapidly expanded as a B2B platform that enables growth and success throughout all stakeholders in the supply chain ecosystem, from small sari-sari store owners to wholesalers, distributors, and renowned FMCG companies and brands.
Through the Sari.PH Pro app, sari-sari store owners can access pricing tools, inventory management, sales and revenue tracking, and working capital loans.