Google is changing a small campaign setting that could have a very practical effect for retailers with physical shops. From 31 August 2026, Local Inventory Ads will be enabled by default for Shopping campaigns.
In plain English, Google will assume that eligible local products can be promoted alongside online products. For shops in Bath and across the South West, that may create useful opportunities to reach people searching for something they want to collect or buy nearby. It also means retailers should check that their local stock data, campaign structure and measurement are ready before the switch happens.
What Google is changing
Google announced the change on its Ads Developer Blog. At present, advertisers or their developers can use the enable_local setting to decide whether products from a Local Inventory Ads feed can serve in a Shopping campaign.
From 31 August, Google says its systems will override that setting and treat local inventory as enabled for all Shopping campaigns. This brings Shopping campaigns closer to the way Performance Max retail campaigns already work.
The change applies to Shopping campaigns. Google says the same field will continue to work as before for other supported campaign types, including Performance Max and Demand Gen.
Why this matters to local retailers
Local Inventory Ads are designed to show nearby shoppers that a product is available in a physical store. That can be valuable for businesses whose local presence is part of the offer: fashion shops, homeware retailers, bike shops, garden centres and other businesses where customers may want an item today rather than wait for delivery.
For a Bath retailer, the change could help connect a search for a product with stock held in the city centre, on Moorland Road or elsewhere nearby. The same principle applies across Somerset, Wiltshire, Dorset, Bristol and Gloucestershire.
However, switching on another source of inventory is not automatically beneficial. Poorly maintained stock data can create disappointing customer journeys. A shopper who clicks because an item appears to be available locally will reasonably expect the website and the shop to agree.
Four things to check before 31 August
1. Confirm whether local inventory is in use
Start by checking Merchant Center and the Shopping campaigns connected to it. Establish whether a local inventory feed exists, which shops it covers and who is responsible for maintaining it. Some businesses may have feeds or integrations that were configured previously but are no longer actively reviewed.
If an agency, ecommerce supplier or feed-management platform looks after this, ask for a clear account of what will become eligible when the default changes.
2. Test stock accuracy
Review a sample of products across several locations. Prices, availability and collection information should match what a customer will actually find. Pay particular attention to fast-moving items and products whose availability changes frequently.
This is as much a customer-experience job as an advertising job. Good Google Ads management cannot compensate for inaccurate product information after the click.
3. Review budgets and campaign structure
Local and online sales do not always have the same margins, fulfilment costs or business value. Check whether local products will compete for the same budget as online products and whether that matches your priorities.
Google says advertisers who want to prevent local offers from serving in a particular Shopping campaign should use a listing scope set to online products, or use the inventory filter in campaign settings to separate online and local inventory. Businesses using custom Ads API integrations should also ensure their developers understand the technical changes in version 25.1 and later.
4. Decide how success will be measured
Clicks and online purchases tell only part of the story when ads are meant to bring people into a shop. Review the actions available to you, such as directions, calls, collection orders or store visits where eligible, and agree which measures are useful.
A modest measurement plan that the team trusts is better than an impressive dashboard built on uncertain assumptions. Our broader guide to search marketing explains why paid and organic visibility should be connected to genuine business outcomes.
Do not wait for the setting to change itself
The 31 August date leaves time to understand the account rather than react after results move. Retailers do not necessarily need to turn local advertising off. For businesses with reliable feeds and useful local stock, wider eligibility could be a good opportunity.
The sensible response is to know what Google will be allowed to promote, make sure the information is accurate and decide whether campaign controls and reporting reflect the way the business actually sells. That turns an automatic platform change into a deliberate local marketing decision.
