CHAPTER 1

INTRODUCTION

Background of the Study

Sari-sari stores are typically owned and operated by a mother whose sole

purpose for putting up the store is to augment their family income. Most sari-sari

stores become a small family business, with other members of the family pitching

in. The best thing about the sari-sari store is the ability of people to buy things or

per piece. Sari-sari stores are the only place where you can buy a piece of candy

or a stick of cigarette instead of having to buy a pack of each. Prices are also

more affordable than convenience stores (but more expensive than

supermarkets) because most of them are run from the owner’s own home. They

don’t profit much from the business venture, though; most of their stock comes

from supermarkets, and they only have a 1 or 2-peso markup on everything they

sell. It’s also more accessible from a financial perspective. Most people know

exactly who the sari-sari store owner is, and will often befriend them so they can

ask for credit for some of their purchases. It’s not healthy for business, but it lets

the store owner become a vital part of the community. These stores also become

a gathering place of sorts, thus being a good place to find people. Most sari-sari

stores are put up because a certain area lacks access to these everyday goods.

If yours is the only place that sells these everyday goods, chances are people will

flock to your store every day, making it ideal for anyone who’s looking for

someone. It’s this combination of convenience and community service that

separates sari-sari stores from convenience stores like 7-11 and Ministop. Profit
won’t be much, since these mothers are usually housewives without any real

business education (Primer, 2016).

The Sari- Sari Store is as Filipino as the Jeepney and it plays just as

important role. Where the Jeepney provides low cost transportation to just about

every nook and cranny throughout the Philippines, the Sari- Sari Store provides

single use packaged goods, or tingi, allowing everyone to purchase goods within

their budget. The Sari- Sari Store is your urban and rural convenience store, but

it is much more than just a store that sells single packaged items. It is a place of

congregation, where you can catch up on the local chismis, rumours and gossip,

it is probably where most chismis originates. The word Sari- Sari is Tagalog for

"various kinds", which is true of the sari- sari store and there "various kinds" of

items for sale. It is not unusual to see a group of people, generally the women

playing tong its out the back, tong it’s is the most popular card game in the

Philippines. Typically a sari- sari store is attached to the back of the owners

home or can be freestanding, is sometimes barred at the front and open seven

days a week and is extremely important in rural areas (Philippines Travel Guide,

2019).

Filipino social entrepreneur Nash Ang has brought the Philippines to

South Korea through the online Pinoy Store – an e-commerce platform which

functions much like a Pinoy neighborhood sari-sari storThe Filipino Sari-Sari

(Tagalog for “varied”) store sells items in single or small quantities – and Pinoy

Store pretty much does the same thing. The all-Filipino virtual store shelves are

packed with the familiar Pinoy favorite snacks, canned goods, beauty products,
and other assorted items (Balibay, 2019).

Objectives of the Study

The objectives of this study is to know the stories of a successful sari- sari

store owners.

Framework of the Study

INPUT PROCESS
OUTPUT

Gathering Data Qualitative

Interview -Descriptive

Review of Related Trustworthiness of A SUCCESSFUL

STORY OF A
Literature (RRL) Findings SARI- SARI
STORE OWNER
Review of Related Data Analysis

Studies (RRS)
Themes

Methodology

Figure 1.0 Schematic Diagram of the Study

In this diagram the researchers input is to gather data and will conduct an

interview. The researchers will also use review of related literature and studies to

prove the relevance of the study. In the methodology, the researchers will
discuss the research design, research locale, data gathering instrument, and the

data gathering procedure.

For the process, the researchers will use qualitative descriptive method.

The trustworthiness of the findings, will use for four criteria which are: credibility,

dependability, confirmability, and transferability. In the data analysis, the

researchers will interpret and analyze the data.

Lastly, for the output we therefore conclude the story of A Successful Sari-

sari store owner.

Scope and Limitations

The study focused to the (2) sari-sari store owners who has a successful

story of their business. The following criteria are included: A sari- sari store

owner, Male or female must be at the age of 20 and above.

Significance of the Study

This study will be beneficial to the following:

Researchers. This study is significant to the researchers as a proof of

effort, the climax of the study and most of all, sense of accomplishment.

Future researchers. The future researchers will make use of the result of

our present study as their source of information.

Definition of terms

The following terms are defined conceptually and operationally for the

readers to have a better understanding:

 Sari- sari store. Conceptually, a sari-sari store is a small neighborhood

retail shop that caters to members of that community. The store usually carries

basic goods such as canned food, instant noodles, coffee, soda, and other things

that Filipinos get on a daily basis. They also sell candy, chips, and beer, but can

have literally anything commodity the community needs (Hapinoy, 2016).

Operationally, Sari-sari store is the business of the respondents of this

study.

Successful. Conceptually, success can be defined as the feelings of

satisfaction and completion you have when your business career is over,

success has other dimensions that for many business owners are as significant,

or more so, than monetary rewards (Hearst Newspaper, 2019).

Operationally, one of the criteria needed to choose our respondents.

 CHAPTER 2

REVIEW OF RELATED LITERATURE AND STUDY

This chapter presents the research conducted by the researcher from

different resources found in the bibliography to know the different outlooks of

person from a topic that maybe use for the development of the research study.

Foreign Literature

The growing Japanese 'sari-sari' store

MANILA, Philippines – In just two years, Japanese convenience store

chain Family Mart branched out more than 60 times in Metro Manila. And by the

end of 2014, Family Mart targets a hundred more to gradually realize their

business plan of 500 branches across the Philippines. The aggressive expansion

of the company – competing with rivals 7-Eleven, Gokongwei-led Ministop, some

Mercury Drug outlets, Villar-owned Finds Convenience Stores Inc. (FCS), and

gasoline station-based Shell Select and Caltex Star Mart whose brands have

been around in the Philippines for a long time – might catch the attention of the
many. But Family Mart, after all, is the second largest convenience store chain in

the world, with more than 22,000 branches, only behind 7-Eleven. In the

Philippines, it operates under a joint venture firm by SSI Group, Inc. – franchisee

of some of the world’s coveted brands – and Ayala Land Inc., the largest real

estate developer in the country. Within the year, it plans to get listed on the

Philippine Stock Exchange as it raises more capital to fuel its expansion, said

Anton Huang, Family Mart CVS Inc. president. But how exactly is it competing in

the market that has been dominated by established convenience store chain

operators? “For the longest years, the convenience store is just a place where

people go inside, grab something to eat, and you go out and leave,” Family Mart

CVS Inc. president Eduardo Paredes Jr. said. Its café-like experience, Paredes

said, is the one that give them an advantage, and he thinks it is what Filipinos

have been looking for in what could be a modern-day “sari-sari” store that sells

ready-to-eat gourmet food like turkey ham with raspberry cream cheese

sandwich, garden salad, cobb salad, and even Japanese favorites California

maki, katsudon, and ramen at reasonable prices. “Filipinos are very aspirational,

you know. We could afford this but you want a little more,” he told Rappler. It’s a

convenience store that affords customers generous seating area. At every

branch there’s a corner where tables with chairs upholstered in brown leatherette

are allotted for customers. Walls are painted in white, while the store lights in

incandescent yellow give the stores a warm tone (Basa, 2015).

Nash Ang sets up online Sari-Sari Pinoy Store in South Korea

Filipino social entrepreneur Nash Ang has brought the Philippines to

South Korea through the online Pinoy Store – an e-commerce platform which

functions much like a Pinoy neighborhood sari-sari store. Pinoy Store sells

Filipino products to Filipino migrant workers in South Korea through a mobile

application downloadable from Google Play Store. The Filipino Sari-Sari

(Tagalog for “varied”) store sells items in single or small quantities – and Pinoy

Store pretty much does the same thing. The all-Filipino virtual store shelves are

packed with the familiar Pinoy favorite snacks, canned goods, beauty products,

and other assorted items (Balibay, 2019).

Local Literature

How to Start a Sari-Sari Store with Small Capital in the Philippines

The Sari-Sari store is your local neighborhood convenience store. These

are informal businesses that are set up just about anywhere there is good foot

traffic. People who want to have a business from their homes or one that does

not need much capital will usually opt for a Sari-Sari store. It is a simple

operation. You stock up your store with popularly bought products and

merchandise that should be priced more attractively than the larger commercial

retail stores. Despite the proliferation of the foreign brands of convenience

stores, Filipinos still flock to the Sari-Sari store. We’ve heard the stories of Sari-

Sari store owners who have been able to send their children to school because

of this humble and unassuming business. You can make real money with a Sari-
Sari store business if you run it professionally. It is possible to start a Sari-Sari

store with small capital in the Philippines but be prepared to put in a lot of work

and dedication (Manarang, 2019).

Sari-sari stores

A Philippine institution, the humble sari-sari store – sari-sari means

“various” or “a variety” – is often no more than a barrio shack or a hole in the wall

selling an eclectic but practical range of goods. If you’re short of shampoo, body

lotion, cigarettes, rum, beer or you’ve got a headache and need a painkiller, the

local sari-sari store is the answer, especially in areas without supermarkets. All

items are sold in the smallest quantities possible: shampoo comes in packets half

the size of a credit card, medicine can be bought by the pill and cigarettes are

sold individually. Buy a soft drink or beer and you may be perplexed to see the

store holder pour it into a plastic bag, from which you’re expected to drink it

through a straw. This is so they can keep the bottle and return it for the deposit of

a few centavos. Most sari-sari stores are fiercely familial, their names – the Three

Sisters, the Four Brothers or Emily and Jon-Jon’s – reflecting their ownership.

The sari-sari store is also held dear by Filipinos as an unofficial community

centre. Many sari-sari stores, especially in the provinces, have crude sitting

areas outside, encouraging folk to linger in the shade and gossip or talk

basketball and cockfighting (APA, 2019).

Foreign Studies

The Retail Industry (International)

 Retail is the second-largest industry in the United States both in number of

establishments and number of employees. The U.S. retail industry generates

$3.8 trillion in retail sales annually ($4.2 trillion if food service sales are included),

approximately $11,993 per capita. The retail sector is also one of the largest

worldwide. CARD Upscale Research on Mini-Variety (Sari-Sari) Stores: Prepared

by E. Leviste Page 13 of 30 Retail trade accounts for about 12.4 percent of all

business establishments in the United States. Single-store businesses account

for over 95 percent of all U.S. retailers, but generate less than 50 percent of all

retail store sales. Gross margin typically runs between 31 and 33 percent of

sales for the industry but varies widely by segment. The retail industry accounts

for about 11.6 percent of U.S. employment (Leviste, 2015).

In India, on the other hand, the retail industry is the largest industry with

an employment of around 8% and contributing to over 10% of the country's GDP.

It is expected to rise by 25% yearly, being driven by strong income growth,

changing lifestyles, and favorable demographic patterns. It is expected that by

2016 modern retail industry in India will be worth US$ 175- 200 billion, with

revenue expected in 2007 to amount US$ 320 billion and increasing at a rate of

5% yearly. A further increase of 7-8% is expected with the growth in

consumerism in urban areas, rising incomes, and a steep rise in rural

consumption.5 The Indian retail market, which is the fifth largest retail destination

globally and being one with the largest number of retail outlets (12 million) in the

world according to industry estimates, is estimated to grow from US$ 330 billion

in 2007 to US$ 427 billion by 2010 and US$ 637 billion by 2015. Of the 12
million, nearly 5 million sell food and related products. However, organized retail

accounts for only 4 per cent of the total market, offering huge growth potential in

this segment.6 The Asia Pacific Region shows steady growth with now 44%

share in global retailing value sales. China remains the fastest changing market,

with Malaysia and Korea coming in next. Leading countries for hypermarket

development include Taiwan, Thailand, Korea and Urban China. Leading

countries in the Pacific for supermarkets include Hongkong and Singapore. On

the other hand, Japan is the leading country for the convenience store with about

40,000 shops from over 80,000 shops located across the Asia Pacific Region.

For traditional trade, Thailand is the next fastest growing market to China.

Another country showing good performance is Sri Lanka (Leviste, 2015).

Local Studies

Sari- Sari Store Neighborhood

The neighborhood sari-sari (variety or general) store is part and parcel of

daily life for the average Filipino. Any essential household good that might be

missing from one’s pantry – from basic food items like coffee and margarine, to

other necessities like mosquito coils, soap, and matches – is most conveniently

purchased from the sari-sari store nearby at affordably portioned quantities,

sometimes even on credit. Apart from the most affluent communities, the sari-sari

store is a constant feature of residential neighborhoods in the Philippines both in

rural and urban areas, proliferating even in the poorest squatter communities.

About 93 percent of all 1 sari-sari stores nationwide are located in residential

areas and are typically operated from a portion of the owner’s house. Residential

areas in Metro Manila exhibited “a widespread scattering of tiny neighborhood

stores,” the most common of which is the sari-sari store He describes these

stores in greater detail: “…the store is merely an open, stall-like recess on the

lower floor of a dwelling. Nearly every block has one to four such stores, located

on the corners of the crossroads, with an occasional store in the middle of the

block. The range of customers must be limited to the immediate vicinity. Poor

neighborhoods, even the most destitute group of squatters’ shacks, have a

surprisingly large number of these stores.” Nearly three decades later, Silverio

wrote, “No single socioeconomic institution in the country today boasts greater

numerical presence in a Philippine community than the sari-sari store. Sari-sari

stores dot the neighborhood landscape so profusely that sometimes only a single

house separates one from another”. His observation is just as true today as it

was twenty-five years ago. In a more recent study, observed that it was not

unusual to find four or five stores within the same short block, and in one

instance, three stores were located side-by-side in adjacent homes. Although

both Silverio and Bonnin conducted their research in urban communities, the

popularity of the sari-sari store is not exclusively an urban phenomenon (Bonnin

and Silverio, 2015).

As may be expected in less densely populated areas, rural sari-sari stores

are fewer and farther in between but just as present as their urban counterparts.

An early study observed that each Tagalog barrio or village has at least one sari-

sari store, usually run by a woman. One can expect the same today in the more
remote villages. The fact that many stores are often clustered in the same area,

especially in the urban areas, leads one to suspect that this is not a particularly

lucrative income-generating activity. There is no clear history of how the sari-sari

store emerged, although suggests that the sari-sari store dates back to the Sung

dynasty period (1127AD) when Philippine-Chinese trade began. Other accounts

confirm the establishment of Chinese agent stores during the Spanish period,

although other retailers may have also existed outside the Chinese

network.These stores carry the same types of goods, charge similar prices for

these goods, and therefore compete based on their location. However, the

numerous competitors operating in the same neighborhood limits the market

share of each store in a given community. Also, these stores are appearing to be

more common in poorer neighborhoods, where purchasing power of potential

customers are low, and therefore, the potential market for retail goods as a whole

is likely to be small. Indeed, store owners recognize that excess competition is a

problem, and many claimed that their stores were “just breaking even” and not

making any profits (Bonnin and Silverio, 2015).

 CHAPTER 3

Methodology

This chapter describes the research design, research locale, sources of

data, data gathering instrument, data gathering procedure, trustworthiness of

findings and analysis procedure of the study.

Research Design

The researcher was used the qualitative research design using the

narrative approach. Qualitative research is a type of social science research

that collects and works with non-numerical data and that seeks to interpret

meaning from these data that help us understand social life through the study of

targeted populations or places (Ashley Crossman, 2019).

Research Locale

This study was conducted in Bacolod City wherein the Sari- sari store

business of the conversation partners is located.

Conversation Partners
 The conversation partners of the study include the successfull story of a

sari- sari store owner their successful story in this filled of business. The inclusion

criteria were as follows: a Sari- sari store owner, male or female, and must be 30

years old and above.

Gatekeeper

The first gatekeeper for this study was the loyal customer of the sari- sari

store because he knew the key informant and persons involved in the process of

the study.

The second gatekeeper for this study was a loyal customer of the sari- sari

store because he knew the key informant and persons involved in the process of

the study.

Gatekeeper is a term used in social analysis to refer to persons who are able to

arbitrate access to a social role,field setting or structure. A gatekeeper is not

censors, as such, but is involved in negotiation and impression management.

This negotiation revolves around the conflict between those seeking access and

the organisational concerns of those whom the gatekeepers represent (Harvey

Lee, 2018).

Data Gathering Instrument

The data gathering instrument used in this study is interview with the help

of semi-structure questionnaire that contained nine(9) items that covered the

successful story of their sari-sari store.

Data gathering instrument is a surveys or questionnaires used for collecting data

in survey research. It is usually include a set of standardized 9 questions that

explore a specific topic and collect information about demographics, opinions,

attitudes, or behaviours (Stephanie Rosenblatt, 2015). Interview is a formal

meeting at which someone is asked questions in order to find out if they are

suitable for a job or a course of study (Collins, 2019). A semi-structured

questionnaire is a type of interview in which the interviewer asks only a few

predefined questions while the rest of the questions are not planned in advance

(Eticha, 2019).

Data Gathering Procedure

The following procedures in the data gathering were proposed:

A letter of permission explaining the purpose of the study was sent to the

respondents which is the sari- sari store owner for approval. Upon approval, the

researchers identified the key informants of the study. An interview schedule was

set by the researcher and informed consent was signed by the participant and

the researcher proceeded to interview.

The interview was conducted the collected data was analayzed and

treated with confidentiality.

Trustworthiness of Findings

Trustworthiness of findings is divided in to four (4) criteria: credibility,

transferability, dependability and confirmability. It is referred as validity and

reliability (Statistics Solutions, 2019). Trustworthiness of result is the bedrock of

high quality of qualitative research.

Credibility is how confident the qualitative researcher is in truth of the

research study’s findings (James Lani, 2019).

Member check, also known as participant or respondent validation, is a

technique for exploring the credibility of results. Data or results are returned to

participant to check for accuracy and resonance with their experiences (Sage,

2019). Thus this strategy was used by the researcher to show the credibility of

the instrument which can be showed through interview questions updates base

on first findings from raw data to last results.

Transferability is how the qualitative researcher demonstrates that the

research study’s is findings are applicable to the other contexts. In this case,

other context can mean similar situation, similar population, and similar

phenomena. Qualitative researchers can use the rich description to show that the

research study’s findings can be applicable to other context, circumstances and

situation (James Lani, 2019).

Rich description is a way of writing that includes not only describing and

observation but also the context in which behaviour occurs. Also it is the way of

writing in qualitative (Cecile, 2015).

Dependability is the extent that the study could be repeated by other

researcher and that the finding would be consistent. A qualitative researcher can

use inquiry audit in order to establish dependability (James Lani, 2019).

 Code-recode, a researcher should conduct this throughout the data

analysis phase of the study. After coding a section of data, the investigator needs

to wait at least two (2) weeks and then return and recode the same the same

data and evaluate the results (Ratnakar, 2019). This help the researcher gather

more understanding of data patterns and enhance the presentation of

participants’ narrations.

Confirmability is the degree of neutrality in the research study’s findings. In

other words, this means that the findings are based on participant’s responses

and not any potential bias or personal motivations of the researcher. This

involves making sure that researcher bias does not skew the interpretation of

what the research participants said to fit certain narrative. To establish

confimability, qualitative researchers provide an audit trail (James Lani, 2019).

Audit trail is how the data analyse in either the results chapter or the

methodology chapter. Also it highlights every step of data analysis that was

made in order to provide a rationale for the decisions made. This helps establish

that the research study’s findings accurately portray participants’ responses

(James Lani, 2019).