MANILA, Philippines — Sari-sari stores across the Philippines saw a dramatic rise in sales in March as consumers stockpiled goods in anticipation of price hikes and supply chain disruptions stemming from the escalating Middle East crisis.
According to Filipino tech startup Packworks, which operates a network of over 300,000 sari-sari stores, gross merchandise value (GMV) surged to P3.73 billion in March from P1.97 billion in February — an 89% jump.
Packworks attributed the spike to fuel price volatility. After oil firms announced double-digit price hikes on March 17, GMV soared by 265% on March 21 alone, signaling that store owners rushed to secure inventory before logistical costs filtered down to retail prices.
"As the backbone of local communities, sari-sari stores continue to demonstrate resilience in times of disruption," said Hubert Yap, Packworks' chief platform officer. "However, they remain highly vulnerable to price fluctuations and logistical challenges, highlighting the need for continued support."
Bigger Baskets, Fewer Trips
Beyond overall sales growth, the crisis has reshaped buying habits. Average basket sizes — the amount spent per visit — climbed to a range of P597 to P1,560 in March, up from P337 to P1,097 in February. This drove GMV expansion even though transaction volumes rose only 17%, suggesting that consumers are consolidating trips to save on transportation costs.
Regionally, the Cordillera Administrative Region posted the largest increase in basket size at 101.7%, reaching P1,560 per transaction. The National Capital Region followed with an 85% rise to P733, while the Bangsamoro Autonomous Region in Muslim Mindanao saw an 80.2% increase to P892.
"With growing uncertainty and rising oil and commodity prices, our data suggests that sari-sari store owners are proactively adjusting their purchasing strategies," said Andoy Montiel, Packworks' chief data officer. "Larger basket sizes and increased inventory levels indicate a shift toward preparedness for potential supply disruptions and rising costs."
Inventory Build-Up and Top Sellers
As demand surged, stores also ramped up inventory, with some regions reporting delivery lead times stretching to three weeks. Among product categories, cigarettes registered the highest sales increase at P234 million in March, followed by laundry detergent at P116 million, and gin at P66 million.
The trend underscores the resilience of sari-sari stores amid global economic shocks, while also highlighting their vulnerability to price volatility and logistical bottlenecks.