Breville Group (BRG) – Breville’s Best Buy win

Breville Group designs, develops, markets, and distributes small electrical kitchen appliances in the consumer products industry in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its products sell under the Breville, Kambrook, Baratza, Sage and Lelit brand names. Breville was founded in 1957 and is headquartered in Alexandria, Australia.

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Breville executed a major US retail expansion in late 2025 where it installed ‘store-in-store’ formats in 300 of the more than 1,000 stores operated by US big-box consumer electronics retailer Best Buy. This was part of a deliberate consolidation of vendors by Best Buy, which has rationalised its small domestic appliance offering to five brands – three primary brands in Breville, Dyson and SharkNinja and two secondary brands in De'Longhi and Bella – although brands outside that range can still sell through Best Buy’s Marketplace online channel.

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The consolidation of vendors by Best Buy is described by Breville management as a "material change" to the retail channel structure in the US. The brands chosen benefit from additional shelf space and a structural lock-in, while the brands that have been deranged lose access to more than 1,000 retail locations. This dynamic is also playing out across other Best Buy categories, not just small domestic appliances.

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As a primary partner in Best Buy’s consolidated vendor strategy, this should provide Breville with a significant competitive advantage in the giant US market. Following recent weakness in the Breville share price, we upgrade to Buy from Accumulate with an unchanged price target of $37.20.