Small-format stores gain traction in Phl

As consumer preferences evolve, small-format modern trade stores-such as neighborhood supermarkets, mini-marts, and convenience stores are emerging as key players in the industry, driven by demand for speed, accessibility, and efficiency.

- Ehda M. Dagooc

According to a report from Retail Asia, small-format retail stores have captured a US$40 billion market in Southeast Asia in 2024. In the Philippines, where the sachet culture is deeply ingrained, the sector accounted for US$1.5 billion in 2022, complementing the traditional sari-sari stores with a more structured shopping experience.

Despite its rapid expansion, the small-format retail sector in the Philippines remains underpenetrated, holding just a 9 percent market share in 2024-an increase from 5 percent in 2013. This is still lower than in neighboring countries like Indonesia, Thailand, and Vietnam.

According to a Boston Consulting Group report, the Philippine market has the potential to follow a similar trajectory as its regional counterparts, provided the right infrastructure and logistics solutions are put in place.