The landscape of Philippine micro-retail is undergoing a historic shift as regional hubs outpace Metro Manila in store expansion and transaction activity. According to the latest data from Filipino tech startup Packworks, the sari-sari store sector is seeing a surge in growth driven primarily by provinces in Mindanao and the Visayas.
Analyzing over 1 million monthly transactions across its network of 300,000 stores, Packworks reported that 213,051 stores actively transacted through its app in 2025—a 21% increase from the previous year and a significant leap from 133,000 in 2023.
The Rise of the Regions: BARMM and NIR Lead the Surge
The study identified the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) and the Negros Island Region (NIR) as the primary engines of this nationwide growth.
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BARMM: Recorded a staggering 116% increase in active stores. This was bolstered by a 119% boost in Gross Merchandise Value (GMV) and a 97% rise in transactions, largely attributed to the rollout of regional internet connectivity projects in the latter half of 2025.
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Negros Island Region: Saw a 58% increase in active stores, with GMV and transactions surging by 134% and 114%, respectively.
“We are seeing a trend where regional economies are becoming the new centers of growth for the sari-sari store sector,” said Andoy Montiel, Packworks Chief Data Officer. “While Metro Manila remains a stable core, the rapid growth in BARMM and Negros suggests regional owners are quickly adopting digital tools to serve a larger customer base.”
Efficiency Over Quantity in Metro Manila
In the National Capital Region (NCR), the data revealed a trend of “quality over quantity.” While the total number of transacting stores saw a slight decline, the remaining stores became significantly more efficient. App usage in the capital rose by 15%, while GMV grew by 31% and transactions by 37%.
Resilience in the Face of Disaster
The study also underscored the role of sari-sari stores as economic lifelines during natural calamities:
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Central Visayas: Following a 6.9-magnitude earthquake on September 30, GMV rose from PHP 131 million in September to PHP 158 million by December.
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Central Luzon: Despite being hit by Typhoon Paolo in October 2025, stores saw a 15% GMV increase within the same month, peaking at PHP 199 million during the holiday season.
Connectivity: The Final Frontier
While growth is widespread, the data highlighted a digital divide in Region XIII (Caraga). Despite an 11% growth in store count, app usage declined by 15%, signaling a critical need for further internet infrastructure development in the area.
