FILIPINO consumers are increasingly turning to sari-sari stores for everyday necessities as persistent cost pressures force households to stretch their budgets.
“We expect further down-trading in coming months, amid tighter household budgets,” Maybank Research said in a commentary on Thursday.
Down-trading refers to consumers shifting toward lower-cost products, smaller package sizes or more affordable retail channels as they manage limited disposable income.
Purchasing patterns in sari-sari stores suggest that more consumers are prioritizing value and convenience amid concerns over rising living costs, Maybank said.
Gross merchandise value (GMV) generated by sari-sari stores was said to have surged to P3.7 billion in March from P1.97 billion in February as consumers stocked up on pantry staples amid fuel price volatility and anticipated price increases due to the war in the Middle East.
The increase was accompanied by a sharp rise in basket sizes, which climbed by at least 40 percent month on month to between P597 and P1,560.
Transaction volumes also rose by 17 percent, indicating that households purchased more items per shopping trip while continuing to rely on small-format neighborhood stores.
Maybank said the products that recorded stronger demand included cigarettes, soft drinks, biscuits, powdered milk and canned goods — staples commonly purchased by households seeking affordable food and daily necessities.
The trend is expected to further strengthen the importance of sari-sari stores, which remain the most widespread retail format in the Philippines despite the rapid expansion of supermarkets, hypermarkets and convenience store chains.
Maybank said the Department of Trade and Industry projects the sari-sari store sector to generate sales worth P2.4 trillion by 2030, representing a compound annual growth rate of about nine percent from 2024 levels.
The Philippines is estimated to have around 1.3 million sari-sari stores, making the sector one of the country’s largest retail ecosystems and a key distribution channel for consumer goods manufacturers.
Maybank noted that sari-sari stores in provincial areas were increasingly outperforming those in Metro Manila.
Data also showed that gross merchandise value growth in the Bangsamoro Autonomous Region in Muslim Mindanao and the Negros Island Region reached 119 percent and 134 percent, respectively, in 2025, far exceeding Metro Manila’s 31 percent.
The continued strength of sari-sari stores is also creating opportunities for larger retail and consumer companies that supply the sector, Maybank said.
Among the listed retailers, Puregold Price Club was identified as a major beneficiary because of its extensive relationship with sari-sari store operators through its Tindahan ni Aling Puring membership program.