Bangsamoro, Negros power surge in 2025 mom-and-pop store activity

MOM-AND-POP stores in the countryside outperformed their Metro Manila counterparts in sales and transaction activity last year, driven by rising digital adoption and improving connectivity outside the Philippine capital, according to a study by Philippine tech startup Packworks.

In a report released on Tuesday, Packworks said 213,051 mom-and-pop stores in its network actively transacted through its mobile platform in 2025, up 21% from a year earlier.

Stores in the Bangsamoro Autonomous Region in Muslim Mindanao posted the strongest gains. Transactions there more than doubled, while gross merchandise value or store sales climbed 2.2 times. App usage in the region surged 77%, Packworks said.

The company attributed this growth to improved internet access following the rollout of regional connectivity projects, which allowed more store owners to adopt digital tools for inventory, ordering and customer engagement.

The Negros Island Region also posted strong performance. Store sales jumped 2.3 times last year, while the number of active stores grew 58%. Transactions and app usage more than doubled, according to the study.

In contrast, mom-and-pop stores in Metro Manila posted more modest gains. Transaction volumes rose 37% year on year, while sales increased 31%. App usage grew 15% in the capital region.

The findings suggest that regional economies are becoming more active growth drivers for the country’s small retail sector, Packworks Chief Data Officer Andres Montiel said.

“We are seeing a trend where regional economies are becoming the new centers of growth for the sari-sari (mom-and-pop) store sector,” he said in a statement.

Regional store owners are adopting digital tools faster to expand their customer reach and improve operations, he pointed out.

The study also highlighted resilience among regional stores despite natural disasters that disrupted parts of the country last year.

Central Visayas recorded a 7% increase in gross merchandise value (GMV) in 2025 despite a magnitude‑6.9 earthquake that struck the region in September.

Meanwhile, stores in Central Luzon posted a 15% increase in GMV.

However, growth was uneven across regions. App usage in the Caraga Region, northeastern Mindanao, declined 15%, which Packworks linked to lower internet penetration and connectivity challenges.

The results underscore the evolving role of mom-and-pop stores as contributors to regional economic activity, Packworks co‑founder Hubert Yap said.

“Sari‑sari stores are no longer just neighborhood fixtures,” he said in the statement. “They are evolving businesses capable of driving regional economic momentum.”

Mom-and-pop stores are typically classified as micro, small and medium enterprises, which account for more than 99% of businesses in the Philippines and contribute roughly 40% to gross domestic product, making them a key pillar of economic growth. — B.M.D. Cruz