Why Physical Stores Remain the Main Stage in 2025

As digital commerce continues to expand, one might assume physical stores are losing relevance. Yet in Indonesia, the latest Kantar Worldpanel FMCG Monitor Q2 2025 tells a different story. Despite the convenience of online shopping, consumers still rely heavily on brick-and-mortar stores for their daily purchases. Proving that the physical retail space remains the beating heart of the shopper's journey.

Steady Economy, Confident Shoppers

Indonesia’s economy continues to grow at a steady pace, with GDP and household consumption both up 5.1% year-on-year in Q2 2025. The Consumer Confidence Index remains strong at around 125–128, signaling optimism and stable purchasing power among Indonesian households. This economic stability has a direct impact on FMCG spending. Shoppers continue to visit their favorite minimarkets and supermarkets regularly, keeping in-store activity vibrant across both urban and rural areas.

Why In-Store Still Matters

Even as e-commerce becomes part of daily life, physical stores offer something digital channels can’t fully replicate the tangible experience. Shoppers want to see, touch, and compare products before they buy. It’s a sensory process that builds trust and triggers spontaneous discovery.
In-store shopping is also deeply tied to habit and emotion. From a quick grocery run to a planned family trip, these store visits remain social and cultural moments that online transactions simply can’t replace.

The Real Decision Point Happens at the Shelf

The moment of purchase often happens inside the store, not before. What shoppers see, hear, and experience during their visit directly influences which brands they choose. A well-timed promotion, engaging shelf display, or audio-visual message can instantly shift preference. That’s why in-store retail media has become one of the most effective marketing touchpoints for FMCG brands. It connects brands with shoppers in real time, exactly when intent turns into action.

‍

Turning Visibility into Impact

For marketers, this shift is an opportunity. The key isn’t just being present online but staying visible in the physical environments where brand decisions are made. Through solutions like ShopComm’s in-store retail media network, brands can capture shopper attention right at the shelf, transforming everyday store visits into moments of conversion.

In 2025, the shelf is still the stage, and visibility remains the most powerful currency in retail.