July 10, 2025

The Everyday Choice in a Downshifting Market

Market Commentary

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These days, shopping is no longer about what people want. It is about what they can actually afford. Quietly, many are adjusting their habits. Bottled coffee is being replaced with sachets. Skincare routines that used to include ten steps now stop at two. When it comes to food, the priority has shifted to what is practical, filling, and can last longer on the shelf.

This shift is not just happening among lower-income groups. Middle-class consumers are also becoming more cautious. Not because they are facing a crisis, but because uncertainty is growing. In March, Indonesia’s Consumer Confidence Index fell to 121.1. The number is still decent, but the direction matters. People are starting to think twice before spending, questioning what is essential and what can wait.

Still, basic needs remain. People continue to eat, clean, and care for their homes. While spending on lifestyle and non-essentials is being scaled back, essentials stay in the cart. The splurges can wait. What matters now is what people actually use every day.

This is exactly where Alfamart continues to shine In times like these, the store is more than just a place to shop. It becomes a habit. A familiar, reliable spot where daily necessities are always available and always affordable. Whether it is a five-thousand-rupiah sachet or a higher-end household product, everything is there. Consumers do not need to switch stores, just adjust their choices within the same shelf.

That consistency also shows in the numbers. While national retail sales have been volatile, especially during economic slowdowns, Alfamart has consistently performed better. Even when national figures turned negative, AMRT stayed in positive territory, proof of how strong and resilient its business model truly is.

And if the story already makes sense, the numbers make it even more convincing.

As of March 2025, Alfamart's revenue increased by nearly 12 percent compared to the same period last year. Gross profit showed strong growth and is now comfortably above seven trillion rupiah. Even with slightly tighter margins, the company still achieved close to 10 percent growth in net profit. This reflects not just the ability to sell more, but to sell more intelligently by staying closely aligned with what consumers genuinely need and want.

Alfamart may not be the cheapest store, nor the most luxurious, but it is the store people return to time and again. It simply makes sense. In both prosperous times and periods of uncertainty, Alfamart remains a part of daily routines. In the current environment, that kind of consistency is its greatest strength.

For investors who are looking for stability when the outlook is unclear, AMRT deserves a place on the radar. This is not about chasing the latest market momentum. It is about recognizing the value of a solid foundation. And today, that is exactly what matters most.

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July 10, 2025

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