Lincoln dealerships are changing dramatically. Here's why.

Ford Motor Co. is trimming its number of Lincoln dealerships through buyouts as the automaker redesigns its luxury experience for customers in an attempt to be more competitive, requiring its Lincoln dealerships to exist as separate boutiques that include intimate cafes, shopping and uniquely personal service.

The Dearborn automaker is working to reach its goal this year of cutting more than 40% of its Lincoln dealerships over four years, Lincoln spokeswoman Anika Salceda-Wycoco recently told the Detroit Free Press.

"They are not just stand-alone Lincoln dealerships, but are brand-exclusive facilities that are designed around the client experience and our brand DNA," she said.

Between 2021 and 2023, Ford trimmed its Lincoln dealerships from 685 to just over 500, Salceda-Wycoco said. The goal is to cut that number down to about 400 by December, she said. She declined to provide dollar amounts associated with the buyouts.

"We will continue to work together with our retailers to make sure we have the right representation in the top luxury markets," Salceda-Wycoco said.

The automaker is working to get away from dealerships that sell both Ford and Lincoln, because the Lincoln brand gets lost, she said.

The newest Lincoln facilities are inspired by a vitrine, derived from French for glass display case, the company said.

Salceda-Wycoco described the vitrine dealerships this way:

• The new layout moves away from the traditional transaction space to one that is centered on the client experience and allows for flexibility based on the dealership needs.

• Equipped with either two-, four- or six-vehicle displays, vitrine adds conveniences such as a cafe, boutique retail space, new car delivery suites and ample room for new technology demonstrations.

• Dealers can opt for a boutique showroom design that will allow clients to experience the Lincoln brand in a premium lifestyle environment, like in Scottsdale, Arizona.

• The new, open design features a serene sanctuary as a sales pavilion, which provides clients with a personalized, one-on-one sales and service experience.

By the end of 2023, the company had 164 brand-exclusive Lincoln dealerships, or stand-alone sites, including 91 vitrine dealerships, Salceda-Wycoco said. This year, 23 vitrine dealerships are in progress, she said.

In Michigan, vitrine dealerships will be located in Southgate and Grand Blanc. La Fontaine Lincoln is currently under construction, relocating to Grand Blanc from Flushing, Salceda-Wycoco said.

The retailer consolidation journey, as she calls it, is part of a multiyear strategy that is focused on making sure there are fewer locations for the premium brand. The design and mission mirror what competitors have done for years, including complimentary coffee bars and luxury shopping inside the dealership.

Peter Spina Jr., executive vice president and general manager of Lincoln of Wayne (New Jersey) and Lincoln of Ramsey (New Jersey), sells exclusively Lincoln vehicles in the new vitrine facilities.

"I definitely believe in the path we’re on. Lincoln has really been on this course of guest-centric, more of a hospitality approach to how we serve our clients," he told the Free Press on Monday. "We find our clients are looking for an elevated experience. Having this beautiful vitrine design, when you walk into the space, you understand the Lincoln brand. We've been able to move away from something very transactional and into these spaces where the experience comes to life."

Spina, whose father and grandfather also sold Lincoln, said his customers are seated in lounge-style pavilions instead of desks. His team prepares in advance for customer visits, taking food and drink orders that may include sparkling water or flavored sodas or a latte with a Lincoln emblem in the foam or fresh pastries or bagels. The sales process itself is transparent and digital, using tablets and screens within the pavilion area, he said.

"I think the last few years have been a challenge for the luxury consumer, in all aspects, not just automotive. Focus has shifted from guest experience and hospitality," Spina said. "People see that our personal touch and care is genuine and crafted with them in mind. They've been blown away. We hear from clients new to Lincoln who have been blown away by the product, the facility and the process, clients from Lexus, BMW and Mercedes. It's very exciting."

'It does make sense'

The Lincoln move is smart and necessary, branding experts told the Free Press.

"A luxury brand, by its very nature, has to feel unique and distinctive from the regular offerings. It requires more control, more scarcity, a more curated experience," said Marcus Collins, a marketing professor at the University of Michigan's Ross School of Business and author of "For the Culture: The Power Behind What We Buy, What We Do, and Who We Want To Be."

Fewer dealerships will deliver a better experience, he said. It's like buying a Rolex at Macy's, which wouldn't make it feel very special, rather than a specialty jeweler. "This is necessary for any brand that warrants a price premium."

David Aaker, a San Francisco-based global brand strategist who wrote, "The Future of Purpose-Driven Branding" book praised the Lincoln strategy, too.

"I think it's a good decision. It does make sense," he told the Free Press. "You look at Apple, and a good portion of the Apple success is the stores. They give them a sense of modernity and competence and energy. It’s amazing what the stores have done for the Apple image. With Samsung, you go into some AT&T store somewhere. Apple is so differentiated. That’s kind of the role model, especially when Lincoln is competing with Mercedes-Benz. Mercedes has got stand-alone stores. Lincoln has to play catch up."

This latest initiative is unrelated to electrification or market adjustments in that area.

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Contact Phoebe Wall Howard: 313-618-1034 or phoward@freepress.com. Follow her on X at @phoebesaid

This article originally appeared on Detroit Free Press: Lincoln to close more dealerships in 2024, focus on luxury boutiques