Australian household goods companies are poised for stronger-than-expected sales growth in 2026 and 2027, supported by improving housing activity and a surge in renovation demand, according to a Wednesday note by Jarden Research.
Sales growth is expected to peak at around 7% in the second half of 2026, compared to about 3% in the second half of the current year, Jarden said.
The current product cycle favors companies with shorter replacement timelines and greater exposure to home renovations and secular technology trends, Jarden added.
Early-stage home development activity may begin to recover in the first half of 2026, aided by government housing supply initiatives and a backlog of construction activity.
JB Hi-Fi (ASX:JBH) and Harvey Norman (ASX:HVN) are expected to benefit earlier, given their focus on electronics and appliances.
Meanwhile, Wesfarmers (ASX:WES), Temple & Webster Group (ASX:TPW), and Beacon Lighting (ASX:BLX) stand to gain from their sensitivity to house price movements and alterations and additions activity.
In contrast, companies more exposed to new housing construction and trade-related sales, such as Metcash (ASX:MTS) are seen as later-cycle beneficiaries.
Shares of Harvey fell 1%, while shares of Beacon rose 3% in recent Friday trade.
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