Given that around 14 million Filipinos considered themselves poor in the first quarter of 2023, sari-sari stores are integral in empowering consumers, especially in lower-income areas.
However, a study we conducted early this year in collaboration with sociocultural research firm Fourth Wall suggested that Filipino consumers at the local level were still plagued by high prices. Data obtained from our intelligence tool Sari IQ saw sari-sari store inflation rate had averaged 15.6 percent, 4.4 percent greater than the official food inflation rate of 11.2 percent reported by the PSA in January.
Addressing the effects of inflation on the hyperlocal retail ecosystem could be a step forward for people in the lower-income bracket. We at Packworks have been working with the local nanays and sari-sari store owners and through these grassroots efforts, we believe key measures could make things a bit easier for them.
One way is to provide access to affordable supplies. Efficient distribution networks and access to quality goods at reasonable prices ensure competitive pricing and affordable options in them. At Packworks, we work with fast-moving consumer good companies to provide promotions and discounts to our partner sari-sari store owners. Through this, we aim to help them manage the rising costs and, as a result, enable customers to cope with the impact of inflation on their budgets.
Giving them access to financial products to borrow capital at lower interest rates may also help alleviate their struggle. Store owners frequently find themselves burdened with debt due to the excessive interest rates on loans. Also, although pushed into the wall to raise markup prices in the goods they sell, some store owners would often resort to settling with minimal profit.
While we wait for the high tides of prices to go down, we must look at what we can do to ensure that no one is left behind. Let’s aim to keep sari-sari stores accessible—not just by keeping them open for business but by allowing them to display abundant and affordable options for all.Ibba Bernardo is cofounder and chief marketing officer of Packworks, a startup that brings technology-based solutions to help sari-sari store owners become more efficient in managing their business.
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