Provinces take the lead as sari-sari growth outpaces Metro Manila, Packworks finds

Growth in the Philippines’ micro-retail sector is shifting decisively beyond the capital, with regional hubs now outpacing Metro Manila in both store expansion and transaction activity, according to new data from Filipino tech startup Packworks.

Analysing over one million monthly transactions across its network of more than 300,000 sari-sari stores, the company found that 213,051 stores actively transacted through its platform in 2025. This marks a 21% increase from 176,000 in 2024, and a sharp rise from 133,000 in 2023.

At the forefront of this surge are the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) and the Negros Island Region (NIR), which emerged as the country’s fastest-growing micro-retail markets.

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BARMM recorded a 116% increase in active stores, alongside a 77% rise in app usage, a 119% jump in gross merchandise value (GMV), and a 97% increase in transactions. Growth accelerated in the second half of the year, following the rollout of regional internet connectivity projects. Meanwhile, Negros Island saw active stores grow by 58%, with app usage rising 106% and both 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. While Metro Manila remains a stable core, seeing a 37% increase in transactions, the rapid growth in regions such as BARMM and Negros suggests that regional store owners are quickly adopting tools to serve a much larger customer base,” said Andoy Montiel, chief data officer at Packworks.

While regional areas expanded rapidly, the National Capital Region (NCR) displayed a different trajectory, favouring efficiency over scale.

The number of transacting stores in Metro Manila declined slightly, but those remaining became more productive. App usage increased by 15%, while GMV rose 31% and transactions climbed 37%, signalling a “quality over quantity” dynamic in the country’s most mature retail market.

Beyond growth, the data underscores the resilience of sari-sari stores in disaster-prone regions.

In Central Visayas, store activity rebounded strongly after a 6.9-magnitude earthquake on 30 September. GMV rose from nearly 131 million pesos (US$2.2 million) in September to almost 140 million pesos (US$2.3 million) in October, before reaching 158 million pesos (US$2.6 million) by December.

Similarly, Central Luzon recorded a 15% increase in GMV despite the impact of Typhoon Paolo in October 2025, climbing from 150 million pesos (US$2.5 million) in September to 172 million pesos (US$2.9 million) in October, and peaking at 199 million pesos (US$3.3 million) during the holiday season.

These trends reinforce the role of sari-sari stores as essential economic lifelines, maintaining momentum even amid external shocks.

Not all regions experienced the same trajectory. Caraga Region (Region XIII) posted an 11% increase in store numbers but saw app usage decline by 15%, highlighting ongoing challenges in internet penetration and digital infrastructure.

“As store owners in the provinces gain access to more resources, they are proving to be the economic backbone of their communities. The surge in the regions shows that sari-sari stores are not just local fixtures, but are evolving businesses capable of driving regional economic momentum,” said Packworks co-founder Hubert Yap.

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