Abstract

The expansion of discount retail chains has intensified competition among small community businesses. In North Caloocan City, the presence of DALI Stores presents challenges for micro-retailers, particularly sari-sari store owners with limited resources and localized markets. This study examined the impact of DALI Store expansion on micro-retailers’ revenue generation, focusing on customer service, product differentiation, sales revenue growth, product variety, and customer basket size. The study aimed to provide insights into how micro-retailers adapt to competitive retail environments. A descriptive quantitative research design was employed. Data were collected through structured survey questionnaires administered to purposively selected sari-sari store owners operating near DALI Stores. The instrument captured business profile, sales trends, and perceived competitive effects. Weighted mean and Kruskal–Wallis H-test were used to analyze revenue-related indicators and determine significant differences across respondent groups. Most respondents reported monthly revenues between PHP 10,001 and PHP 30,000. The composite weighted mean indicated that micro-retailers generally perceived DALI Store expansion as having a moderate impact on revenue generation. Customer service, product variety, and customer basket size were identified as key sustaining factors. Significant differences were observed across business types and revenue levels, while years of operation showed no significant variation. Common challenges included price competition, reduced customer loyalty, and supplier limitations. Findings suggest that DALI Store expansion creates competitive pressure but also encourages adaptive strategies among micro-retailers. Many respondents strengthened customer relationships, offered localized products, and applied flexible selling practices to sustain revenue. Economic capacity influenced resilience, whereas business longevity alone did not ensure stability. The study highlights the importance of service quality, strategic adaptation, and product relevance in supporting micro-retailers within evolving retail markets.