Philippine ‘Sari-Sari’ Stores Achieve Remarkable P8 Billion Sales Milestone in 2023

In 2023, the Philippines witnessed a significant growth in the grassroots level of its economy as sari-sari stores, the small neighborhood variety stores integral to local communities, reported a remarkable sales figure exceeding P8 billion. This represents a substantial 21.2% increase from the P6.6 billion recorded in 2022, underlining the vital role these microenterprises play in the country’s economic landscape.

Packworks, an analytics startup, provided these insights through a comprehensive analysis involving over 270,000 sari-sari stores across the nation. The study not only highlighted the increase in sales but also noted a rise in transaction numbers from 7.2 million in 2022 to 8.2 million in 2023. This data underscores the expanding reach and influence of these stores in daily Filipino life.

Interestingly, the surge in sales was particularly notable in stores situated outside urban centers, with rural and agricultural regions of Luzon leading the way. Among these, Region IV-A recorded the highest sales at P2.83 billion, followed by Region II with P1.82 billion, and Region III at P1.58 billion. This contrasts with traditional urban centers like the National Capital Region and Cebu, which ranked fifth and sixth, respectively, in terms of sales.

The product categories driving this impressive performance include instant noodles, ready-to-heat products, recipe mix, and ready-to-cook goods, reflecting the convenience these stores offer to their customers.

Packworks’ analysis also addressed the common assumption that inflation drives sari-sari store sales. The data, however, suggests that these sales trends are more closely tied to seasonal occasions and holidays, such as Christmas and Holy Week, rather than inflation rates. This observation indicates a unique consumer behavior pattern, where these stores serve not just as convenience outlets but also as essential components of the country’s socio-economic fabric during significant occasions.

This performance highlights the resilience and adaptability of the sari-sari store model, proving its continued relevance and contribution to the Philippine economy, particularly in non-urban areas. As these stores forge stronger connections within their communities, they not only facilitate access to everyday goods but also play a crucial role in the broader distribution of wealth and economic activity across the nation.