The coronavirus pandemic has forced individuals and society to adapt in order to function and endure. Here are 3 ASX shares that I think have adapted well to these changes and could prosper in 2020 and beyond.
Woolworths Group Ltd (ASX: WOW)
The essential services provided by Woolworths were highlighted during the pandemic, with the supermarket giant experiencing unprecedented demand. The pandemic also saw consumers grow their appetite for online grocery delivery services.
In order to accommodate the change in consumer behaviour, Woolworths recently doubled its capacity for online grocery deliveries as the company expects $3 billion in e-commerce sales next year. The supermarket giant has also hired an additional 5,000 third-party couriers to strengthen its current fleet of 800 delivery trucks in order to service more delivery orders.
In addition, Woolworths has announced plans to invest approximately $780 million on 2 automated distribution centres in order to streamline its supply chains.
Marley Spoon AG (ASX: MMM)
Despite the financial turmoil caused by the pandemic, it has unearthed a potential gem in Marley Spoon. Marley Spoon is a subscription-based meal-kit provider that has capitalised on changing consumer behaviour as a result of COVID-19. The company delivers fresh ingredients directly to consumers and operates in 3 primary regions: Australia, the US, and Europe.
Marley Spoon reported that 7.5 million meals were delivered in the first quarter of 2020, resulting in the company's first ever positive cash flow since its IPO. The company also saw a 46% increase in revenue for the first quarter, with growth accelerated by the coronavirus pandemic.
With many consumers opting for the convenience of services provided by Marley Spoon, the company could be well poised for future growth. As a result, Marley Spoon has already completed a $16.6 million capital raising in order to strengthen its balance sheet and fund continued global expansion.
Kogan.com Ltd (ASX: KGN)
Recently, I wrote an article highlighting how the market capitalisation of Kogan.com is 5 times that of Myer Holdings Ltd (ASX: MYR). In my opinion, this reflects the changing of the guard in the retail sector, as consumers opt for the convenience of online shopping over traditional brick-and-mortar shops.
As at 31 May, Kogan saw its active customer base grow to over 2 million, with 126,000 additional customers joining the company in May. The online retailer also reported a 100% increase in gross sales across the April and May period in comparison with the same period last year and also reported a 130% surge in gross profit for the period.
The demand has also been reflected in the Kogan.com share price, which has surged more than 310% from late March and is currently trading at all-time highs. The online retailer recently completed a $115 million capital raising in order to accelerate future acquisition opportunities. Notable acquisitions made by Kogan include Dick Smith and furniture and homeware retailer Matt Blatt.
Should you buy?
In my opinion, the 3 shares mentioned are well positioned to benefit from changing consumer needs and behaviours. I think a prudent strategy for investors is to compile a watchlist of ASX shares that could also thrive in the next 10 years and wait for a good buying opportunity.
