MANILA, Philippines — Growth in the Philippine micro-retail sector is seeing a significant shift toward the provinces, with regional hubs now outpacing Metro Manila in store expansion and transaction activity.
This is the latest insight from Filipino tech startup Packworks after analyzing over 1 million monthly transactions for one year from its mobile application within its network of more than 300,000 stores nationwide. The company reported that 213,051 stores from its network actively transacted through its app in 2025, a 21% increase from 176,000 in 2024 and a significant jump from 133,000 in 2023.
The study identified the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) and the Negros Island Region (NIR) as the primary drivers of this nationwide surge. BARMM recorded a staggering 116% increase in active stores. This coincided with a 77% rise in app usage, a 119% boost in Gross Merchandise Value (GMV) or store sales, and a 97% rise in transactions. Growth was particularly sharp in the second half of 2025, following the rollout of regional Internet connectivity projects. Meanwhile, Negros saw a 58% increase in active stores. App usage jumped 106%, while GMV and transactions surged 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, Packworks chief data officer.
The data revealed a “quality over quantity” trend in the National Capital Region (NCR). While the total number of transacting stores saw a slight decline, the remaining stores became significantly more efficient. App usage rose by 15%, GMV by 31%, and transactions by 37%.
The study also underscored how this regional growth translates to community resilience. Central Visayas demonstrated a strong recovery following the 6.9-magnitude earthquake on September 30. Overall GMV rose by 7%, from nearly PHP 131 million in September to almost PHP 140 million in October, before reaching a high of PHP 158 million in December.
Meanwhile, despite being hit by Typhoon Paolo in October 2025, stores in Central Luzon saw a 15% GMV increase, rising from PHP 150 million in September to PHP 172 million in October, and peaking at PHP 199 million by December during the holiday season. These consistent increases reinforce findings from Packworks’ previous report, which highlight the historical resilience and continued growth of sari-sari stores as essential lifelines even in disaster-prone regions.
In contrast, the data also highlighted areas for further support. Region XIII (Caraga) saw an 11% growth in the number of stores, but a 15% decline in app usage, likely due to the region’s current Internet penetration levels, marking an opportunity for future infrastructure development.
“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.
