The COVID-19 pandemic has seen workplaces around Australia impose widespread self-isolation measures. Telstra Corporation Ltd (ASX: TLS) has led by example, with the company asking its entire Australian workforce to work from home.
The transition to working from home has seen a large portion of the workforce flock to outlets in a bid to set up home offices. Here are some ASX shares that could benefit from self-isolation.
ASX shares that could benefit
Office supplies such as computer monitors, laptops, printers and desks. In addition to home-office products and technology, there has also been a spike in demand for hygiene products such as gloves and masks.
Australian conglomerate Wesfarmers Ltd (ASX: WES) owns retailers Officeworks, Bunnings and Kmart, which offer essential products. As a result, Wesfarmers is well-poised to benefit from the increased demand from consumers and businesses as they look to prepare for self-isolation.
Wesfarmers released an update to the market last week which outlined how the COVID-19 pandemic has impacted its businesses. The company outlined that since the start of the year, overall retail sales momentum has been in line with the first half of the financial year, with strong sales seen at Officeworks, Bunnings and Kmart, in addition to strong online sales.
Other ASX stocks that could benefit from the spike in demand could be Kogan.com Ltd (ASX: KGN) and JB Hi-Fi Limited (ASX: JBH).
What is the Wesfarmers' outlook?
In its statement, Wesfarmers outlined that the company's primary aim during the COVID-19 pandemic is to manage the risk to its workers, consumers and businesses. Despite the sales growth experienced in some retail segments, Wesfarmers noted that the uncertainty and shock surrounding the pandemic has impacted discretionary retail.
Wesfarmers noted the shift in consumer behaviour is expected to continue and is a risk to the overall outlook for retail sales. As a result, Wesfarmers decided to withdraw it profit outlook for the full-year, citing the uncertain outcome of the COVID-19 pandemic. The company looked to assure shareholders of its strong balance sheet, which was further strengthened following the sale of its 4.9% interest in Coles Group Ltd (ASX: COL) last month.
Foolish takeaway
In my opinion, the current measures to work from home may actually be a long-term trend. If productivity levels are maintained or increase, some companies may look to put a large portion of their workforce to work from home or externally. In addition to workplaces being shifted to the home, school closures could also see extended demand for office and educational supplies.
I think a prudent strategy would be to wait for the dust to settle and have a targeted list of companies to watch for an investment opportunity.
