Valentine’s day sales suggest sari-sari store ‘premiumization’
Sales of chocolate products at sari-sari stores saw a significant increase in the days leading up to Valentines’ Day, suggesting that even small neighborhood retail outlets are increasingly becoming a go-to destination for Filipinos buying sweet treats for their loved ones.
Retail tech provider Packworks, through its mobile sari-sari store app and business intelligence tool Sari IQ, says that sales of Swiss chocolate brand Toblerone spiked nearly 3,000 percent between Feb. 13 to 15 compared with purchases made during other months.
British chocolate brand Cadbury, on the other hand, saw an increase of nearly 500 percent.
“Our data show that the conventional notion that sari-sari stores only sell cheap products might be outdated,” says Packworks’ Chief Data Officer Andoy Montiel.
“These insights suggest that these neighborhood stores can also be the source of more premium products, exemplifying how versatile they can be, evolving to the needs of their communities and fulfilling specific consumer demands, capitalizing on every opportunity, even for occasional indulgences such as these,” he adds.
Montiel says this adaptability makes these local businesses an integral part of the “Filipino social fabric,” noting that sari-sari stores function as a “true extension of the family pantry.”
In total, Packworks says it recorded more than P60 million in sales for the total chocolate category for the peak months of February.
Prices bite but…
“This finding illustrates that sari-sari stores can be a source of premium items, not just the cheapest products, depending on the occasion and seasonal needs of their communities,” Montiel says.
With this newfound data, Packworks CEO Bing Tan says that this trend demonstrated Filipinos’ passion and affection for loved ones, explaining that Filipinos still splurge on premium items like chocolates amid rising prices of essential commodities.
“Even with rising prices, we see that Filipinos make an effort to prioritize celebrating special occasions and showing their love for family and friends. This resilience and commitment to connection are truly inspiring, and sari-sari stores play a key role in making these celebrations possible,” Tan says.
