After a pandemic-driven poor performing year in 2020, investors expected 2021 to be much better for the UK stock market. The FTSE 100 index, comprising of the top 100 UK shares, has inched slightly upwards, showing a mere 1.3% growth in the past nine months. 

I’ve already explored two UK shares that I’d buy and hold for the next decade. But since then, I’ve found two more that look like they have some enormous long-term growth potential for my portfolio.

The rising online fashion industry

The past three years saw consistent growth in the online and retails sale of clothing. Online fashion sales were recorded at £28 billion in 2020.

ASOS (LSE:ASC) is a British online fashion and cosmetic retailer which has powered ahead during the pandemic. By taking advantage of its global infrastructure, the online retailer’s international sales are consistently growing. And that’s what brought this UK share onto my radar.

In addition to rising revenues, the company is also expanding its network to accelerate its multi-brand platform strategy. The acquisition of Topshop and Miss Selfridge has boosted the company’s image to become the number one destination for fashion-loving twentysomethings worldwide. Additionally, this has led to ASOS gaining a solid place in the US market. The increased global presence indicates long term growth and makes ASOS a worthwhile UK share to invest in. At least, that’s what I think. However, it’s not without its risks.

The centralisation of its logistical operations has been a good strategy so far. But it has shown some weaknesses as well. For example, a fire in one of its distribution centres led to a £50 million loss, excluding the lost revenue from cancelled orders and service disruptions. In fact, this is one of the reasons the UK share recently saw a large drop in its stock price. This was, of course, an exceptional event. But there will always be the risk of something similar happening again in the future.

Having said that, ASOS has shown commendable performance in my mind. And providing it can continue to deliver over the long term, it could lead to some substantial growth for my portfolio.

A smart shift within the tobacco industry

British American Tobacco (LSE:BATS) is amongst the top names in the tobacco industry. It is a high dividend yield stock with stable revenues.

Despite the health hazards, tobacco use is still on the rise. But change is coming in user preferences which are shifting towards non-combustible tobacco products. In line with these changes, the tobacco company is targeting 50 million non-combustible users by 2030 with an expected £5bn in revenue. This strategic shift has led to an increase in revenue from this New Category segment of the business by 50% in the first half of FY2021. Overall half-year revenue has increased by 8.1%, which is driven by multi-category performance. These stats are attractive enough for me to consider investing in this UK share.

The tobacco company has one of the most far-reaching distribution networks out there. As a result, half of its global sale volume comes from retailers. Moreover, e-commerce traffic, revenue, and social media mentions have grown strong, strengthening the brand name.

The shift to non-combustible products has reduced the company’s exposure to government level restrictions on tobacco products. However, it is worth noting that at the moment, the firm is still generating most of its income from items like cigarettes. And these products currently facing increased scrutiny from health regulators. Should new restrictions be imposed before British American Tobacco can migrate its revenue stream, the share price will likely suffer.

Despite this risk, I still believe this firm could be one of the best long term UK shares to add to my portfolio today.

Final thoughts on UK shares for long-term growth

Both these businesses have various risks and hurdles to overcome. But with established customer bases, along with the pro-activeness to adapt to changing landscapes, I believe they can continue to thrive for many years to come. At least, that’s what I think. Therefore, I am looking to add both these firms to my portfolio in my pursuit of long term UK growth shares.