How to Start a Sari-Sari Store in the Philippines

Sari-sari stores are the heart of many Filipino neighborhoods, serving as a convenient go-to for daily essentials. These small, family-run stores contribute significantly to local economic growth by providing accessible goods at affordable prices and belong to the top small business ideas in the Philippines.

In 2023, sari-sari stores in the Philippines achieved sales of PHP 8 billion, reflecting a 20% increase from the previous year. This indicates a strong recovery from the pandemic’s impact. Packworks’ data collected from over 200,000 sari-sari stores revealed 8.2 million transactions throughout the year, highlighting the continued importance of these neighborhood stores in Filipino communities.

This blog aims to provide aspiring entrepreneurs with a comprehensive guide to setting up a successful sari-sari store in the Philippines, offering insights into everything from initial planning to daily operations.

What Is a Sari-Sari Store?

A sari-sari store is a small neighborhood retail shop in almost every corner of the Philippines. They are typically found in residential areas, serving as convenient spots for quick purchases.

‘Sari-sari’ means ‘mixed’ or ‘assorted.’ Sari-sari stores offer various products, from canned goods and snacks to personal care items and household essentials. Sometimes, you can also buy over-the-counter medicines like paracetamol, ibuprofen, or antacid tablets.

Is a Sari-Sari Store a Good Business?

Starting a sari-sari store can be a profitable business venture in the Philippines. With a relatively low initial investment, you can set up a store that caters to the daily needs of your community. The key to success lies in offering various products at competitive prices and maintaining good customer relationships. Sari-sari stores have a steady stream of loyal patrons, making them a reliable source of income, especially in densely populated areas.

Paano Mag-Set Up ng Sari-Sari Store

Setting up a sari-sari store is straightforward but requires careful planning and attention to detail. Here are the steps to get you started:

Humanap ng Magandang Location

When choosing a location for your sari-sari store, consider a spot in a residential area near schools or transportation hubs. However, if renting or leasing a space is not feasible, starting a home-based sari-sari store is a practical option. Setting up a sari-sari store at home can be advantageous, especially if your residence is in a neighborhood with many households. Your proximity to your customers creates a convenient shopping option for them, encouraging repeat visits. 

Kumuha ng Permit

Secure the required permits from your local government to operate your sari-sari store legally. This includes a barangay clearance, business permit, and BIR registration.

Maghanap ng Mapagkakatiwalaang Suppliers

Find reliable suppliers who can offer you products at wholesale prices. Look for local distributors or visit public markets to get the best deals on your inventory. Ideally, your suppliers must be located near your sari-sari store, as this will reduce the expenses of commuting to wholesale stores whenever you need to replenish your stocks.

Ayusin ang Store Layout

Organize your store layout to maximize space and make it easy for customers to find what they need. Display high-demand items at eye level and keep your store clean and well-lit.

Maglaan ng Budget

Set aside a budget for your initial inventory, store setup, and emergency funds. Managing your finances carefully ensures you have enough capital to keep your store running smoothly. For a basic setup, you can start with a budget of ₱20,000 to ₱50,000, sufficient to cover fast-moving sari-sari store items and other essentials. 

However, if you aim for a more extensive inventory, consider increasing your start-up capital from ₱70,000 to ₱100,000. This will allow you to offer a wider variety of goods in larger quantities, potentially attracting more customers and increasing your store’s profitability.

Mga Produkto sa Sari-Sari Store

A sari-sari store offers diverse products catering to the community’s everyday needs. Here are some common items you’ll find:

Canned Goods

Canned goods like Century Tuna and 555 Sardines are staples in sari-sari stores for their long shelf life and convenience. They are essential for quick meal preparations, especially during emergencies or when fresh ingredients aren’t available. Canned meats and vegetables also provide affordable protein and nutrients, making them must-haves.

Snacks

Snacks such as Piattos, Chippy, and Nova are always in demand, particularly among children and young adults. These affordable treats are perfect for quick munching, making them bestsellers in any sari-sari store. Their variety—from chips to chocolates—ensures something for everyone, driving frequent purchases.

Beverages

Beverages like Coca-Cola and Pepsi and powdered drinks like Tang are essential items, particularly during hot days. They cater to a broad audience, from children needing refreshment after play to adults seeking a quick energy boost. Cold drinks are also a strong sales driver, especially in tropical climates.

Personal Care Products

Personal care items like soap (Safeguard), toothpaste (Colgate), and shampoo (Head & Shoulders) are necessities. These trusted brands are prevalent in every household, ensuring repeat customers. Stocking these items also positions the store as a one-stop shop for essential personal hygiene needs, increasing customer loyalty.

Cellphone Load

Cellphone load or e-load is a high-demand item in sari-sari stores, typically offered in denominations ranging from Php 10 to Php 500. A 5% to 15% discount attracts customers, making it a popular choice for quick purchases. These affordable amounts encourage high-volume sales and significantly boost profitability. Offering e-load is crucial, as most Filipinos rely on prepaid services.

Game Top-Up Cards

Game top-up cards are increasingly popular, especially among younger customers. These cards enable players to purchase in-game items, driving regular sales. With denominations ranging from PhP 50 to PhP 500, they are affordable and appealing, especially when offered at a slight discount, making them profitable for store owners.

Medicines

Over-the-counter medicines like paracetamol (Biogesic), cough syrup (Tuseran), and pain reliever (Medicol) offer quick relief for common ailments. Stocking these essentials is important for customers needing immediate access to medication. These medicines are often bought in small quantities, ensuring regular sales.

Desserts

Try to resell popular ice cream brands in the Philippines or make local desserts yourself. Desserts like ice cream, gelatin, and local treats like leche flan and ice candy are popular, especially for sweet tooth lovers. Offering a variety of desserts caters to different tastes and adds an element of indulgence to your product lineup. These items are especially in demand during festive occasions and summer. 

How to Promote Your Sari-Sari Store Online?

Here are different ways how you can create buzz for your sari-sari store using the internet.

Leverage Social Media Platforms

1. Create a Facebook Page: Create a Facebook page for your sari-sari store. Share updates, new products, and promotions regularly.
2. Engage with the Community: Respond promptly to comments, messages, and inquiries. Engage with your followers by asking questions or running polls to encourage interaction.
3. Use Visual Content: Post clear and appealing photos of your products. Use Facebook and Instagram stories to showcase daily deals or new arrivals.

Use Local Online Marketplaces

1. Join Local Online Marketplaces: List your products on local online selling platforms like Shopee, Lazada, or Facebook Marketplace.
2. Promote Delivery Services: Offer local delivery options and promote this service online. If you need to accommodate more deliveries than you were starting, explore partnerships with delivery services of Grab, Lalamove, Joyride, or Angkas.

Run Online Promotions

1. Offer Discounts and Bundles: Announce special promotions, discounts, or bundle offers through social media and online marketplaces.
2. Use Hashtags: To increase the visibility of your posts, use relevant hashtags like #SariSariStore, #LocalBusinessPH, and #SupportSmallBusiness.

Engage with Local Influencers

1. Collaborate with Micro-Influencers: Partner with local micro-influencers to promote your sari-sari store. They can help you reach a wider regional audience.
2. Sponsor Giveaways: Host giveaways with influencers to boost your store’s online presence and attract new customers.

Join Online Community Groups

1. Participate in Local Facebook Groups: Share your sari-sari store’s promotions in local community groups. Ensure you follow group rules to avoid spamming.
2. Promote in Buy and Sell Groups: Actively post your products in buy-and-sell groups that cater to your community.

Mga Common Mistakes na Dapat Iwasan sa Pagtatayo ng Sari-Sari Store

Avoid these common pitfalls when setting up your sari-sari store:

Lack of Inventory Management

Failing to manage inventory effectively can result in frequent stockouts, which may lead to lost sales or overstocking, which ties up capital and increases the risk of spoilage. Regularly monitoring your stock levels and updating your inventory system is crucial to maintaining a profitable balance.

Poor Location Choice

Selecting a location with minimal foot traffic or low visibility can significantly impact your store’s success. Sales can succeed with a steady flow of customers. Prioritize finding a spot that is easily accessible, visible from the street, and located in a community your target market frequents.

Ignoring Customer Feedback

Customer feedback provides valuable insights into what works and what doesn’t in your store. Dismissing or neglecting complaints and suggestions can alienate your customer base and damage your reputation. Actively seeking and addressing customer feedback can improve services and stronger customer loyalty.

Underpricing or Overpricing Products

Setting prices with proper market research can be beneficial. Underpricing might attract customers initially but can severely cut into profits. On the other hand, overpricing may push potential customers away from competitors. Conduct thorough market research to determine a pricing strategy that balances profitability with customer expectations.

Final Thoughts

Setting up a sari-sari store is a rewarding venture that requires careful planning and a deep understanding of your community’s needs. By following these steps, you can build a successful store that generates income and serves as a vital resource for your neighborhood. Remember to continuously innovate and adapt to market trends to stay ahead in this competitive business.