For decades, sari-sari stores have been an integral part of Filipino communities, serving as go-to outlets for daily essentials. However, these small businesses often face economic difficulties, limited financial access, and operational inefficiencies. Recognising these challenges, Packworks, a Philippine-based startup, has developed a business-to-business (B2B) platform designed to digitise and streamline sari-sari store operations.
Founded in 2018 by Bing Tan, Ibba Bernardo, and Hubert Yap, Packworks emerged from the founders’ firsthand observations of the difficulties faced by small store owners in remote areas. Initially designed to serve a handful of multinational companies’ sari-sari store partners, the platform has since evolved into a nationwide solution that connects small businesses with brands, wholesalers, and financial institutions.
Before adopting digital tools, sari-sari store owners relied on manual methods for inventory management, sales tracking, and sourcing products. They often purchased stock from supermarkets and wholesalers, incurring high operational costs due to fuel expenses and retail markups.
“At Packworks, we identified these challenges and developed a digital solution to help these businesses operate with maximum gain, greater security, and access to goods and financial services,” said the company. “By connecting sari-sari store owners directly with brands and retailers, we offer them access to a variety of cheaper goods compared to supermarkets or grocery stores.”
Moreover, Packworks collaborates with financial institutions to provide microloans to store owners, helping them manage cash flow and withstand market pressures. With a network of over 300,000 sari-sari stores, the platform serves as a bridge between grassroots entrepreneurs and essential financial services.
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The adoption of digital tools has transformed the operations of many sari-sari stores. According to Packworks, larger stores that partnered with the platform have seen sales growth of between 34 and 51 per cent.
“One of the innovative initiatives we implemented was deploying Starlink connectivity in partnership with Help.NGO, AWS, and Starlink,” the company explained. “By providing these sari-sari stores with internet access, they were able to fully utilise the Packworks app, significantly optimising their operations. Additionally, offering free Wi-Fi to customers created a community hub that led to a 50 per cent increase in transactions.”
Beyond operational efficiencies, connectivity has enabled these businesses to become digital hubs, offering essential services to local communities. While the technology is crucial during natural disasters, it also plays a vital role in day-to-day commerce, allowing store owners to adapt and thrive in an increasingly digital economy.
The unique traits of sari-sari store owners
Sari-sari store owners display distinct entrepreneurial behaviours as they transition to digital platforms. Packworks has observed that these micro-entrepreneurs maintain a strong community-centric approach. Many extend informal credit to regular customers, reinforcing the communal bond that ties their business success to the well-being of their neighbourhoods.
Additionally, sari-sari store owners are highly adaptable and strategic in sourcing products. “They consistently compare prices across wholesalers, supermarkets, and digital platforms to ensure they get the best deals,” the company noted. “They are also highly adaptable, evolving their product offerings based on community needs and competitive trends.”
Unlike traditional retailers, these store owners prioritise long-term partnerships over transactional relationships. Packworks aims to support this mindset by positioning itself as a strategic partner rather than just a service provider.
Peer influence plays a crucial role in encouraging sari-sari store owners to embrace digital tools. As digital transactions become more prevalent, more store owners are shifting towards online banking, digital payments, and inventory management solutions.
“Sari-sari stores have long adapted to meet the needs of their communities,” Packworks said. “With digitisation, store owners gain a deeper understanding of their customers, respond to evolving market needs, and maintain their role as vital social hubs.”
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Looking ahead
Packworks continues to develop new features to further empower sari-sari store owners. Among the upcoming initiatives are expanding internet access to remote stores, enabling better operations and community engagement; deploying digital LCD signs that display targeted promotions based on sales data, allowing FMCG brands to run targeted deals through sari-sari stores, and using a research grant from the Department of Science and Technology (DOST) to develop AI-powered insights for sales trends and inventory management.
Packworks envisions transforming sari-sari stores into digital hubs that not only sustain small businesses but also bring essential services closer to communities. By leveraging technology, it aims to ensure that micro-retailers remain competitive, resilient, and well-integrated into the evolving digital economy.
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Image Credit: Packworks
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