Filipinos' Sari-Sari Store Spending Drops to 2-Year Low Despite Easing Inflation

Manila, Philippines — Monthly spending in sari-sari stores dropped to its lowest in two years at PHP 689.00 in 2024, despite the country experiencing a 3.2% year-to-date inflation rate—the lowest in four years. This data comes from tech startup Packworks through its business intelligence platform, Sari IQ, which analyzed over 1 million monthly sales transactions from more than 300,000 sari-sari stores across the country.

Since 2022, the average basket size in sari-sari stores has steadily declined. From PHP 800.00 in 2022, it decreased to PHP 781.00 in 2023, and further dropped to PHP 689.00 in 2024. This trend suggests that even as inflation eases, the purchasing power of Filipinos has not fully recovered.

Region I (Ilocos Region) saw the sharpest decline in spending, with a 31% drop and a new monthly basket size of PHP 570.00—despite having the lowest average inflation rate last year at 2.1%. The National Capital Region (NCR) followed with a 28% decrease, while Eastern Visayas (Region VIII) posted a 25% drop.

Conversely, CALABARZON and MIMAROPA emerged as regions with the highest average monthly basket sizes—PHP 1,027.00 and PHP 1,237.00, respectively—likely due to regional economic growth rates of 5.6% and 4.4%.

While basket sizes shrank, Packworks observed an increase in shopping frequency. The average number of monthly transactions rose by 16%, from 15 in 2023 to 18 in 2024. Ilocos Region recorded the most frequent visits at 26 per month, indicating a growing “tingi” buying behavior—frequent small purchases rather than bulk buying.

Sari IQ also found that typical sari-sari store baskets included powdered drinks, detergent, seasonings, and hygiene products—reflecting essential, day-to-day items. Sales of sin products like cigarettes and liquor notably declined.

Packworks Chief Data Officer Andoy Montiel explained that the shift in buying behavior reflects a need to stretch household budgets despite easing inflation. “Consumers are prioritizing immediate needs over stocking up, which highlights the resilience of the Filipino ‘tingi’ culture,” he said.

With inflation dipping to 1.4% as of April 2025, Packworks is optimistic that spending patterns may improve. CEO Bing Tan emphasized the role of sari-sari stores as economic indicators and urged policymakers to use this data in developing grassroots-level economic solutions.