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Sari-sari stores grapple with rising prices despite declining inflation – Packworks study

Sari-sari stores are known for their thin profit margins. While they operate as viable businesses, they also serve as extended pantries and community hubs for their neighbors. Even a slight increase in wholesale prices reveals how vulnerable micro-retailers are to cost shifts upstream. This creates a ripple effect, especially in low-income communities where these stores are the primary source of daily essentials.

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Despite the nationwide decline in inflation, prices of various goods continue to rise in sari-sari stores across the Philippines.

New data from Filipino tech startup Packworks, which analyzed more than one million monthly sales transactions from its network of over 300,000 sari-sari stores nationwide through its mobile app and business intelligence tool, Sari IQ, tracked price movements across multiple product categories from 2023 to 2025. The analysis revealed that costs continue to climb despite a general decline in inflation, with some categories experiencing average price increases of at least 11% across various regions nationwide.

Key findings include significant retail price increases across the board for items like baby oil and baby powder. Notably, a 50-milliliter (ml) bottle of Johnson’s regular baby oil increased by 17%, from PHP 42.00 in 2023 to PHP 49.00 in 2025. Meanwhile, a 100-gram pack of Tender Care baby powder rose by 25%, from PHP 40.00 to PHP 50.00. These price hikes were observed in at least five regions: Ilocos Region (Region I), Cagayan Valley (Region II), Central Luzon (Region III), MIMAROPA (Region IV-B), and Bicol Region (Region V).

The study also found that 11 different SKUs within the confectionery and snacks category experienced at least a 13% increase in retail price. For example, the 50-gram pack of Lala Fish Crackers Classic, a popular and usually affordable sari-sari store snack, saw its price surge by 27%, rising from PHP 18.00 in 2023 to PHP 23.00 today. These spikes were recorded in stores based in Regions II and IV-B. Another popular item, the 150-gram pack of Fres candy, recorded a 16% price increase across all its variants, now at PHP 42.00, up from PHP 36.00 two years ago. The candy brand is now more expensive in at least nine regions, including Regions I, II, III, IV-B, V, VI (Western Visayas), VII (Central Visayas), and VIII (Eastern Visayas).

Packworks Chief Data Officer Andoy Montiel highlights the vulnerability of sari-sari stores, saying even a slight increase in their wholesale purchase price can directly affect end consumer pricing.

“Sari-sari stores are known for their thin profit margins. While they operate as viable businesses, they also serve as extended pantries and community hubs for their neighbors. Even a slight increase in wholesale prices reveals how vulnerable micro-retailers are to cost shifts upstream. This creates a ripple effect, especially in low-income communities where these stores are the primary source of daily essentials,” Montiel said.

The upward price trend stands in contrast to the declining national inflation rate. In 2023, the country’s Year-on-Year (YoY) inflation rate was 6.0%, then significantly dropped to 3.2% the following year. It decreased further to 1.9% from January to May 2025, hitting a low of 1.3%, the lowest since November 2019.

Packworks’ data also looked at the pricing trends with the country’s main staple commodity, rice. A five-kilogram pack of premium rice rose from PHP 235.00 (PHP 47.00/kg) in 2023 to PHP 295.00 (PHP 59.00/kg) in 2024, reflecting a PHP 60 increase. This aligned with the Philippine Statistics Authority (PSA) and Department of Agriculture (DA) reports, which cited rice inflation and retail prices ranging from PHP 50 to PHP 58 per kilo during the period.

From January to May 2025, the price slightly dropped by 3.39% to PHP 285.00 (PHP 58.00/kg), following the DA’s imposition of a maximum suggested retail price (MSRP) on imported rice. However, it remains higher than the national average of PHP 50.54 per kilo for well-milled rice. The data also noted similar price variations in the repacked rice or tingi-tingi bigas bundles that are usually informal SKUs but are frequently sold in sari-sari stores at smaller increments to make purchases more affordable or abot-kaya for its neighborhood customers.

Packworks Chief Executive Officer Bing Tan emphasizes the importance of helping sari-sari stores thrive amidst economic shifts.

“Sari-sari stores are more than just retail outlets, but a lifeline for millions of Filipinos. Our latest analysis reveals gaps between national macroeconomic reports and the grassroots micro-retail reality. These insights can act as early indicators to inform distribution chains and policymakers of where support and aid are most needed. It is our hope that by sharing this timely data, we will be able to shed a brighter light on the challenges in practical pricing our store owners face in serving their communities.” 

Sari-sari stores serve as the primary source of daily essentials for around 94% of Filipinos.

For more info about Sari IQ and to uncover more in-depth data trends in sari-sari stores, you may visit http://packworks.io/ or Packworks’ Facebook page to learn more.

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Modern slavery is a business decision – not an accident

Many organisations focus on compliance, reporting and audits, yet fail to build the relationships and trust needed to identify and tackle exploitation. In some cases, competitive pressures and mistrust between firms actively prevent collaboration that could reduce risks. 

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Modern slavery persists because the way global supply chains are designed allows it to remain hidden, according to new research led by Professor Glenn Parry from the University of Surrey and Dr Mike Rogerson at the University of Sussex.  The findings argue that exploitation often stems from business decisions that cut costs by pushing work further down the supply chain, leaving companies with little direct contact with workers and less visibility over how they are treated. 

Around 27 million people worldwide are estimated to be living in conditions of modern slavery, embedded within the production of everyday goods and services. While governments have introduced laws to force companies to report on risks, the research suggests that disclosure alone is not changing behaviour in a meaningful way. 

Instead, firms often maintain distance from the most vulnerable parts of their supply chains. This distance can be geographical, organisational or even digital, such as the use of algorithms that control workers without direct oversight. As a result, companies rely on indirect signals rather than engaging directly with workers, leaving serious gaps in knowledge and accountability. 

The special issue on “Modern Slavery and Supply Chain Management”, published in Supply Chain Management, brings together insights from multiple international studies across sectors including construction, social care, logistics and global manufacturing. Drawing on interviews with practitioners, workers and experts, as well as analysis of corporate reports and policy frameworks, the work examines how governance, partnerships and digital systems shape labour conditions across complex supply networks. 

Glenn Parry, co-editor of the issue and Professor of Digital Transformation at the University of Surrey, said: “Modern slavery is a problem buried in supply chain structures and it is often the result of how those chains are built and managed. When companies prioritise cost and efficiency above all else, they create the conditions where exploitation can thrive.”

The research found that many organisations focus on compliance, reporting and audits, yet fail to build the relationships and trust needed to identify and tackle exploitation. In some cases, competitive pressures and mistrust between firms actively prevent collaboration that could reduce risks. 

It also finds that partnerships between businesses, governments and NGOs can help, but only when they are built on genuine understanding and shared goals. Superficial collaboration risks becoming a tick-box exercise rather than a driver of real change. 

A major recommendation is to shift focus from reporting to knowledge. Companies need to invest in understanding their supply chains in depth, including listening directly to workers. Bringing “upstream voices” into decision making is seen as critical to designing effective anti-slavery measures. 

Professor Glenn Parry added: “If we are serious about tackling modern slavery, we need to stop treating supply chain complexity as an excuse. It is often a choice. That means it can be changed.” 

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Long-serving CEOs may weaken innovation, study finds

Companies led by long-serving chief executives may become less innovative over time unless challenged by strong independent boards.

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A new study from the University of East London has found that companies led by long-serving chief executives may become less innovative over time unless challenged by strong independent boards.

The research examined 215 FTSE 350 companies over an 11-year period between 2010 and 2021. It explored how CEO tenure and independent directors influence a company’s “R&D knowledge stock”, which is the research, expertise and technological capability built through investment in innovation.

The study published in the journal Corporate Governance found that CEOs who remain in office for many years often become more cautious and less willing to back risky research and development projects. These companies were more likely to reduce investment in innovation and long-term technological growth.

Firms with higher numbers of independent directors were more likely to continue building innovation capacity with experienced CEOs and independent directors forming an effective partnership, to combine deep company knowledge with outside challenge.

However, both experienced CEOs and independent directors become more cautious and less willing to back risky research and development projects when the company fails to meet performance aspirations, suggesting that independent directors do not have stable risk preferences.

The findings suggest that innovation is shaped not only by technology and finance, but also by leadership culture and corporate governance structures.

Author Dr Igbekele Sunday Osinubi, of the Royal Docks School of Business and Law, said: “Long-serving CEOs can bring valuable experience and stability, but there is also a risk that leaders become too cautious or too attached to existing ways of thinking. Our findings show that independent directors play an important role in encouraging companies to continue investing in innovation, especially during difficult periods when firms may otherwise retreat from long-term research and development.”

He added: “This matters beyond individual companies. Innovation drives productivity, competitiveness and economic growth. The study highlights how governance structures can influence whether firms continue building the knowledge and technologies that shape future industries.”

The paper argues that regulators and policymakers should consider governance reforms and incentives that encourage long-term innovation strategies, particularly in firms led by long-serving executives. The findings may also influence how boards think about CEO succession planning, oversight and the balance between short-term financial pressures and long-term investment.

Osinubi’s research, “Long CEO tenure, independent directors and R&D knowledge stock: the moderating effect of performance shortfalls”, was published in the Corporate Governance: The International Journal of Business in Society

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Office owners or managers, take note: Increased risk of bullying in open-plan offices

In traditional open-plan offices it is easier to notice colleagues’ shortcomings and become irritated by them. If someone gets frustrated and takes it upon themselves to “do something about” a colleague’s behaviour, and there are no clear guidelines for handling such situations, there is a risk that it may escalate into bullying. Those who are subjected to bullying lack access to a private space for retreat. 

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Open-plan offices entail a clearly increased risk of workplace bullying compared with employees having their own office or sharing with just a few colleagues. This is shown in research from Linköping University, Sweden. 

“Increased bullying is a tangible negative consequence of how you choose to organise the workplace. It’s important to highlight this, as it hasn’t previously been examined,” says Michael Rosander, professor at the Division of Psychology at Linköping University.

Open-plan offices, where many employees share the same space, have become increasingly common. Employers often justify this development as a way to use premises more efficiently and to encourage creative interactions between employees. However, research has shown that open-plan offices do not promote health, job satisfaction or productivity.  

Until now, it has been unclear whether open-plan offices also affect the risk of bullying and employees’ motivation to look for another job. Through surveys of more than 3,300 randomly selected individuals in employment in Sweden, Michael Rosander has now provided an answer. The results are published in the journal Occupational Health Science. 

Thirty per cent of those with some form of office-based work reported that they worked in a traditional open-plan office with no access to private space. Thirteen per cent worked in so-called activity-based offices, where employees spend part of their time in an open-plan environment but also have access to designated rooms for tasks requiring peace and quiet. The remainder had their own office or shared one with only a few colleagues.

For traditional open-plan offices, the survey responses showed a clearly increased risk of bullying compared with those who had their own office or shared an office with only a few colleagues. The difference remained regardless of factors such as personality traits and the extent of remote working. This suggests that the problems are indeed caused by the work environment in the office.  

The researchers’ explanation is that in traditional open-plan offices it is easier to notice colleagues’ shortcomings and become irritated by them. If someone gets frustrated and takes it upon themselves to “do something about” a colleague’s behaviour, and there are no clear guidelines for handling such situations, there is a risk that it may escalate into bullying. Those who are subjected to bullying lack access to a private space for retreat. 

Activity-based open-plan offices, by contrast, showed no increased risk of bullying, likely due to the availability of private spaces. However, in both types of open-plan office, employees were more likely to consider changing jobs. One possible explanation is that activity-based offices also involve more distractions, according to Michael Rosander.

For employers who have introduced, or are planning to introduce, open-plan offices, there are some lessons to be learned. One is to be prepared to deal with irritation and conflicts before they escalate. Another is the importance of providing rooms where employees can work undisturbed. Placing individuals with similar needs and tasks near one another may also reduce the risk of disruption.

“Traditional open-plan offices are in themselves negative for the individual, for productivity, and make people more likely to leave their job. Social interaction also suffers. So it’s worth considering how to handle it,” says Michael Rosander.

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