SM bets on Alfamart franchising to empower local entrepreneurs

October 8, 2025
5:07PM PHT

Insider Spotlight

  • SM’s Alfamart rolls out franchising for the first time in PH
  • Pilot stores in Laguna showcase MSME-driven growth
  • Program empowers local entrepreneurs, tenants, and partners

Alfamart Philippines, the minimart arm of the SM group, has launched its franchising program, piloting two franchise-owned stores in Laguna. 

The move opens new doors for micro, small, and medium enterprises (MSMEs) to grow alongside one of the country’s fastest-expanding convenience retail chains.

The first franchise store was rolled out in October 2024 by Engineer Leovino C. Datario, a long-time Alfamart lessor. The second followed in August 2025, in partnership with Arles A. Uy Jr. of AAU Corporation, which operates 15 laundromats located beside Alfamart stores.

As of September 2025, Alfamart has expanded to 2,337 stores nationwide.

Store opening in Chrysanthemum Village in San Pedro, Laguna with Alfamart COO Harvey T. Ong and Engr. Leovino C. Datario, the first franchisee of Alfamart, and wife Doris Datario | Contributed photo

Why it matters

“This reflects the SM group’s commitment to inclusive growth and entrepreneurship. By allowing tenants to evolve into franchisees, Alfamart is enabling MSMEs to scale alongside its own expansion, strengthening local communities and livelihoods,” said Harvey T. Ong, Chief Operating Officer of Alfamart Philippines.

The franchising initiative is significant because it goes beyond traditional corporate expansion. By extending opportunities to partners and tenants, Alfamart is creating a pathway for local business owners to participate in its growth, turning passive lessors and nearby operators into active entrepreneurs.

The bigger picture

Alfamart’s model blends the accessibility of a neighborhood store with the variety of a supermarket — a format resonating across Southeast Asia as consumers demand affordable, nearby options. With rising costs of living and changing shopping behaviors post-pandemic, the minimart franchise model positions itself as both resilient and essential to daily life.

Moreover, the program reflects a broader trend in retail: large corporations shifting from pure expansion to community-driven growth. In this case, Alfamart not only gains scale but also strengthens its ties to the grassroots economy by supporting local entrepreneurs.

The bottom line

With over 21,000 branches in Indonesia and a strong foothold in the Philippines, Alfamart is turning its nationwide presence into a shared growth engine. 

For aspiring entrepreneurs, this franchising model offers more than profit — it delivers stability, community impact, and a chance to grow with one of the country’s most trusted retail names. – Ed. Princess Daisy C. Ominga 

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