Why a “SariSari” Store Could be a Good Business

In America and many other industrialized countries, big supermarkets have taken over from small general stores.

But if you think that supermarkets have spelled the end of general stores on a global basis, there are actually many countries around the world where small general stores are not only surviving, but are growing.

In the Philippines for example, there are sundry or general stores called “sarisari” stores that serve their immediate neighborhood. In fact, sarisari stores are right in the middle of supermarkets and their customers.

Usually, sarisari store owners buy their products from supermarkets and then resell them to the people in their immediate neighborhood.

If you’re planning to start a small business, perhaps you might need to consider a sarisari store business:

The information in this article is based off my lifetime experience in SariSari/General Stores from both operating one and from observing other SariSari/General Stores.

The Details:

1. What is a SariSari Store?

A “sarisari” or “sari-sari” or “sari sari” store is a neighborhood sundry store in the Philippines. It could be compared to other sundry stores and even general stores around the world.

Many Filipinos, the natives of the Philippines, buy from them their basic grocery needs like snacks, canned goods, rice, instant noodles, eggs, cooking supplies, personal care products, basic medicines, and so on.

But sarisari stores can sell anything. For example, sarisari stores near schools also may also sell school supplies and even offer photocopy services.

There are even sarisari stores that sell cigarettes, beer and other alcohols. Some even offer cooked snacks and meals.

The general rule for sarisari stores is this: if a lot of people are buying them in their neighborhood, it would probably be sold in the neighborhood sarisari store.

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2. Why Does It Still Exist?

You would think that with the propensity of supermarkets and corporate owned convenience stores like 711, that sarisari stores would not survive.

But like other small general stores all around the world, they fill a need unmet by both supermarkets and corporate owned convenience stores.

You see, in the Philippines and many other countries similar to it, not many people have access to their own personal transport, and they also lack access to good public transport. Many people either don’t have access to a supermarket or grocery store, or are too lazy to go to one.

Also, there are people in the Philippines and many other countries who lack the money to pay for large volume or quantity of grocery goods. SariSari stores predominantly sell grocery products in piecemeal quantity and size: which are just right for many people’s budget.

Also, there are a lot of people in the Philippines and many other countries who only get possession of money at the end of their daily working day. SariSari stores usually stay open well beyond normal working hours, which makes them very accessible to these people.

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3. Is it a Good Business?

My family has owned a sarisari store since I was a boy and from my experience, it beats working a minimum wage job. If your sarisari store has a good location, you can easily beat most many working employees in terms of earnings.

Also, since most sarisari stores are located in front of the sarisari owner’s home, they don’t have to leave home to earn money.

But you have to be aware that the customers of sarisari stores are mainly within the immediate neighborhood they are located in, that’s why a sarisari store’s location mainly determines its earnings.

For example, a sarisari store located near a store would probably be very profitable because besides the people living in the neighborhood, the students and staffs of the school are also potential customers of the sarisari store.

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4. Who Fits This Business Best?

SariSari stores are best operated by families, especially people who are retired and/or have a lot of time in their hands.

Since most sarisari stores are located in front of the owner’s house, the family can almost seamlessly mix their family life and sarisari store operations.

Since sarisari stores are essentially a retail business where you wait for customers to buy from you, a family can do their everyday life while waiting for customers to buy from them. A sarisari owner can watch television, cook, do laundry, study, and everything else while passing time.

Just imagine this scenario: you’re a pensioner with a lot of time in your hands, but still wants to earn money. What better thing to do than watch television in your own home all day while you wait for customers to buy from your sarisari store.

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5. Can This be a Big Business?

If you think that just because the customers of sarisari stores are mainly the neighborhoods that they serve, they can’t grow to be very profitable mega-corporations, think again.

There are sarisari stores that are located in different neighborhoods which are owned by the same owner. The profit from each neighborhood might not be much, but the cumulative profits from all the sarisari stores you own would be substantial.

But you don’t have to look far to see how big a sarisari or general store can get. 711 started out as a general store and look at it now, it’s one of the most profitable general store chain in the world.

This is because the business model of sarisari stores is very sound: Give the customers what they want no matter what it is.

Since sarisari stores have a ready customer base which is their neighborhood, all they have to do is to offer small quantities of what they think products people in the neighborhood would buy until they learn which products the people in the neighborhood buy a lot on a regular basis.

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6. Specialization in Industrialized Countries?

If you think that sarisari stores and their counterpart in other parts of the world won’t thrive in countries were people have easy access to supermarkets, think again.

There are sarisari stores in such places as the US, Canada, Australia, Japan and other highly industrialized countries. You might think that just because these sarisari stores mainly only serve the Filipino communities living in their neighborhoods, they would have limited income.

But these sarisari stores also offer remittance and international courier and package delivery services. They also double as restaurants at times.

Also since the Filipinos living in these countries have access to personal transport and good public transport, the customers of these sarisari stores are not only from their immediate neighborhood, but from other areas as well.

But other nationalities have their own versions of their sarisari store or general store. There are general stores owned by Indians, Pakistanis, Chineses, Koreans and other immigrant nationalities.

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Final Words

SariStores and similar sundry and general stores around the world have remained relevant and would continue to remain relevant because they have a sound business model:

They sell what customers buy in many quantities on a regular basis and they almost have a captured market, which is their neighborhood.

A sarisari store is a good business to have for a family or anyone with a lot of time in their hands. This is because while waiting for customers, they can do other things like taking care of their family and household.

Also, 711 and similar companies have proven that there is plenty of room for growth for sarisari stores and its counterparts around the world.

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You Might Be Interested To Read This Article:

Starting a Successful Photocopy Business or Xerox Business

If you’re ever in the vicinity of a school or a government services institution, there is a high likelihood that you’ll see businesses offering photocopy or xerox services. This is because people who go to these institutions are likely to need photocopy or xerox services.

For example, government services institution always demand photocopied or xeroxed versions of your original personal documents. Schools too always demand their students to photocopy or xerox learning materials.

For example, our shop is near a school and students come to us to have their school records photocopied and xeroxed. There isn’t a day when someone avails of our photocopy or xerox services.

But for the most part, you need to complement your photocopy or xerox business with other business offerings in order to earn a full-time income.

Here’s a guide to successfully starting a photocopy or xerox business: ...

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