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Kogan and 1 other ASX share to buy and hold beyond 2025

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If you are looking to expand your ASX share portfolio, I believe the following 2 ASX shares are worthy of consideration. Both operate in the Australian retail market, however both have very different business models. While JB Hi-Fi Limited (ASX: JBH) has a business model largely centred on its brick-and-mortar stores, Kogan.com Ltd (ASX: KGN) is a pure online retailer.

Both shares have been big performers recently and are well placed to grow strongly over the next 5 years, in my view.

JB Hi-Fi

Market-leading electronics retailer JB Hi-Fi has continued to perform strongly, despite the challenges of the coronavirus crisis.

The retailer reported strong revenue growth during 2H20 so far in both its JB Hi-Fi Australia and The Good Guys store chains. In particular, the demand for technology products for remote working, learning and communication have been strong throughout the coronavirus crisis. Its New Zealand stores were impacted by COVID-19 closures. However, New Zealand sales only accounted for $0.22 billion of a total of $7.86 billion of sales during this period.

The company estimates its total net profit after tax for FY2020 is expected to be in the range of $300 million to $305 million. That’s a very impressive increase of 20% to 22% on the prior corresponding period, if it can be achieved.

Despite a strong rally in its share price since late March, I believe that this ASX share is well placed to perform strongly over the next decade. The company is highly skilled at what it does and has excellent product selection. Over the years, JB Hi-Fi has diversified into tech accessories, mobile phones, computers, as well as goods such as fridges and washing machines. JB Hi-Fi also continues to grow its online offering to complement its brick-and-mortar channel.

Kogan

Online retailer Kogan has been one of the star performers on the S&P/ASX 200 Index (ASX: XJO) in recent months. Its share price has risen from $3.92 in mid-March to now be trading at $15.55.

Specialist online retailers such as Kogan have seen a surge in sales due to COVID-19 lockdown restrictions. In a market update in early June, Kogan revealed that for April and May its gross sales climbed by more than 100% on the prior corresponding period.

I think this ASX share is well placed to tap into the growing adoption of online shopping over the next decade. This will be driven by the increasing popularity of its Kogan-branded products. In particular, its fast-growing Kogan Marketplace has been a star performer over the past 12 months.

Additionally, the company has expanded into a broad range of verticals, including internet, mobile, energy and credit cards. This has diversified its business model and broadened its future growth opportunities.

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Phil Harpur owns shares of Kogan.com ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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