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As the Philippines experienced its hottest year on record in 2024, Filipinos turned to sari-sari stores for relief.
Tech startup Packworks released key findings through its mobile sari-sari store app and business intelligence tool, Sari IQ, which analyzes over 1 million sales transactions per month from its network of over 300,000 sari-sari stores nationwide. The report revealed consumption trends that highlight the crucial role neighborhood stores play in meeting immediate needs during extreme weather.
According to its 2024 data, well-known energy drink brand Sting recorded a whopping 83% sales increase, with a PHP 34 million gross merchandise value (GMV) compared to the previous year, up from PHP 18 million.
The sari-sari store staple saw notable sales margins, with Region IV-A (CALABARZON) leading at PHP 7 million in GMV, followed by Region II (Cagayan Valley) at PHP 6.6 million and Region III (Central Luzon) at PHP 6.1 million.
While these regions had strong margins, Mindanao experienced the largest sales increases. Specifically, BARMM (Bangsamoro Autonomous Region in Muslim Mindanao) (+1,810%), Region XIII (CARAGA) (+575%), and Region X (Northern Mindanao) (+554%) recorded over PHP 650,000 in combined GMV. The sales spikes in Mindanao coincided with the all-time temperature records posted, particularly in Butuan City and Malaybalay City, Bukidnon.
Meanwhile, popular powdered iced tea brand Nestea saw a significant 76% spike in sales, recording PHP 30 million worth of GMV compared to PHP 17 million in 2023. Top regions with the highest sales in terms of GMV include Region IV-A (PHP 5.5 million), Region VII (Central Visayas) (PHP 3.1 million), and Region I (Ilocos Region) (PHP 3 million). Meanwhile, Region V (Bicol region) saw the highest sales increase, at +254%, followed by BARMM at +160% and Region VI (Western Visayas) at +138%.
Both Sting and Nestea saw their sales peak in March 2024, coinciding with PAGASA’s declaration of the start of the dry season in the country. Sting saw a 43% sales increase over the previous month, while Nestea saw a 24% increase.
"Our data underscores the critical role sari-sari stores play in providing immediate relief and meeting the ongoing demand for essential refreshment, especially during the hotter months. As forecasts predict continued warm periods this year, it solidifies the sari-sari stores' role as a crucial touchpoint for consumers nationwide, especially for regions that are sweltering through warmer conditions,” Packworks Chief Data Officer Andoy Montiel said.
The Philippine Atmospheric, Geophysical, and Astronomical Services Administration (PAGASA) reported that 2024 is the hottest year on record in the country since monitoring began in 1951.
With prolonged periods of warm weather and all-time temperature spikes recorded last year, consumers nationwide found ways to cope with the record-breaking heat at their neighborhood stores. "The sales trends we recorded not only quantify the remarkable growth but also pinpoint regional nuances in both sales volume and growth. These consumption patterns offer valuable insights for businesses looking to serve this vital market effectively, said Packworks CEO Bing Tan.
Packworks’ Sari IQ is an advanced data analytics tool that processes data from sari-sari stores nationwide to help address the growing needs of store owners and its suppliers to serve its communities with greater efficiency.
For more info about Sari IQ and to uncover more in-depth data trends in sari-sari stores, you may visit http://packworks.io/ or Packworks’ Facebook page to learn more.
OTHER KEY INFO:
● Packworks was born in 2018 out of a passion project by founders Bing Tan, Ibba Bernardo, and Hubert Yap, who started as motorbike buddies delivering solar panels to provinces and far-flung places across the country. During their excursions, they saw firsthand the challenges brought by limited access for sari-sari store owners and embarked on developing an application for small store businesses to have a one-app stop for all their needs.
● Launched as a solution for multinational companies with only a handful of sari-sari store partners, Packworks has rapidly expanded as an E-RTM 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. Beyond its direct users, Packworks also drives indirect reach by enabling brands and organizations to impact hundreds of thousands of sari-sari stores through its extended network. With about 75% of sari-sari stores owned by women, Packworks also works to empower female entrepreneurs.
ABOUT PACKWORKS
Founded in 2018, Filipino tech startup Packworks started its mission to help Filipino sari-sari stores connect with the multinational companies operating in the country. Through a comprehensive digital solution, Packworks provides an accessible and scalable digital tool that helps store owners streamline business operations, access financial services, and build a more sustainable business through technology. With over 300,000 sari-sari stores now part of its growing network, Packworks continues to empower the Filipino neighborhood store, which serves as the backbone of Filipino communities, through digital innovation. Committed to reaching even the most remote areas in the country, Packworks continues to work toward creating a more progressive, connected, and inclusive Philippines.
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