Insider Spotlight
Packworks’ analysis of more than 300 sari-sari stores over a two-week period after September 2025 data collection showed a 46- percent jump in daily gross merchandise value, leading to a 17-percent increase in total sales.
The company says the lift underscores how small retailers can benefit from data-backed recommendations once considered out of reach for microenterprises.
Driving the gains
Stores that followed AI-generated recommendations saw higher revenue despite operating on fewer selling days—cutting active days by 20 percent, from five to four over two weeks.
Packworks, in a press release, said this demonstrates how AI can guide store owners to refine product mix, manage inventory, and align stocking with demand more efficiently, maximizing income even with shorter operating hours.
Zoom in
Insights came from Packworks’ Store Insighting Project document, which turns a store’s transaction history into tailored recommendations.
By comparing pre- and post-performance data, the company attributed the sales lift to improved movement of previously underperforming products flagged by the AI system.
The tech behind it
Packworks developed its AI-powered precision marketing tool through the DOST-PCIEERD Startup Grant Fund Program awarded in 2024.
It also partnered with ST Telemedia Global Data Centres Philippines to run large-scale machine learning models via its AI Synergy Lab, and with Ateneo’s Business Insights Laboratory for Development to build a data warehouse and business intelligence tools.
“Even at this early stage of adoption, 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.
As stores learn to leverage the recommendations from the AI-driven insights they can access through SIP, microretailers can make smarter decisions that translate into higher sales and more efficient operations,” Packworks chief data officer Andoy Montiel said in the statement.
The bigger picture
Packworks’ push aligns with national goals to accelerate AI adoption under the Philippine Development Plan 2023–2028.
While AI could unlock P2.8 trillion in economic value by 2030, only 14.9 percent of local firms currently use AI tools, according to the Philippine Institute for Development Studies.
“Our mission at Packworks 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,” Packworks co-founder Hubert Yap said. —Ramon C. Nocon | Ed: Corrie S. Narisma
