Breville Group (ASX:BRG), JB Hi-Fi (ASX:JBH), and Harvey Norman Holdings (ASX:HVN) are set for continued growth, supported by a favourable economic backdrop and rising consumer spending, according to a Wednesday Jarden note.

Retailers such as JB Hi-Fi and Harvey Norman are expected to benefit from the ongoing product replacement cycle, RBA interest rate cuts, and improving housing activity, Jarden said, as it projects sector sales to grow over 6% into 2026.

The research firm noted that JB Hi-Fi's market share appears to be stabilising as it posted its lowest third-quarter gains since 2021, which it attributes largely to base effects.

Meanwhile, Jarden added that Harvey Norman may be regaining ground thanks to its stronger exposure to housing and information technology categories, which now comprise around 25% of its sales compared to about 15% for JB Hi-Fi.

The research firm preferred Harvey Norman due to its lower market expectations, stronger recent sales trends, and potential upside from housing-related tailwinds.

Jarden said that tariff impact can be a key driver in the future, likely causing deflationary pressure on the industry, but most manufacturers have recently increased their prices in Australia and the US.

Jarden rated Breville Group and JB Hi-Fi as neutral with price targets of AU$32.10 and AU$95.50, respectively.

The research firm rated Harvey Norman Holdings as overweight with a price target of AU$5.40.