Filipinos spent less on purchases from sari-sari stores in 2024, the lowest in two years at P689 despite the ease of inflation, and reflecting a decline for the second straight year.
This is the latest finding from tech startup Packworks through its mobile sari-sari store app and business intelligence tool Sari IQ, which looked at over 1 million monthly sales transactions from its network of over 300,000 sari-sari stores across the Philippines.
It was observed that the average basket size of Filipino consumers from sari-sari stories went down since 2022, when the average basket size was P800. This decreased to P781 in 2023 and reached its lowest point last year.
This, despite Philippine headline inflation settling at 3.21 percent in 2024, the lowest in four years.
Comparing regions, Region I (Ilocos Region) experienced the largest decrease at -31 percent, resulting in a P570 monthly average basket, despite the region recording the lowest annual average inflation rate last year at 2.1 percent, This was followed by the National Capital Region (NCR) with a -28-percent decrease and a P702 monthly average basket, and Region VIII (Eastern Visayas) with a -25-percent decrease and a P508monthly average basket.
In contrast, Regions IV-A (Calabarzon) and IV-B (Mimaropa) notably spent the most on sari-sari stores with monthly basket sizes at P1,027 and P1,237, respectively. These figures can be attributed to the improved economies in the two regions.
Packworks’ data also showed that while Filipinos on average spent less, they visited sari-sari stores more frequently. Last year, its network of stores recorded an average of 18 monthly transactions nationwide, a 16-percent increase from around 15 transactions in 2023. Notably, Region I had the highest number of monthly transactions at 26, followed by Region IX (Zamboanga Peninsula) with 25, and Region V (Bicol Region) with 20.
Furthermore, Packworks’ business intelligence tool Sari IQ found that aside from declining sin products (cigarettes and liquor), seasoning and recipe mix items, detergent, powdered drinks, and hygiene products (shampoo and conditioner) were the most common goods that make up the typical baskets of a regular Filipino sari store.
A SHIFT IN TRENDS
Packworks Chief Data Officer Andoy Montiel said the data underscores a trending shift in the “tingi” type of buying behavior, which sees more frequent, smaller purchases, as a way for Filipinos to manage their purchasing power.
“The combination of Filipinos’ smaller basket sizes and more frequent visits to sari-sari stores points to a preference for buying in smaller, more affordable portions – the essence of the ‘tingi’ economy. This behavior likely stems from consumers needing to stretch their budget further, even in a lower inflation environment. They might be opting to buy only what they immediately need, rather than larger quantities less frequently to stock-up,” Montiel said.
For his part, Packworks CEO Bing Tan emphasized the crucial role of sari-sari stores in providing a snapshot of the broader economic activities in the country.
“At Packworks, we see sari-sari stores as more than just cornerstones of our communities but vital barometers of the Philippine economy. Our latest data shows how Filipinos have adapted to economic realities from a macro to micro barangay level – a crucial finding that can help in crafting measures in helping economic eases trickle down to the grassroots level,” Tan said.
