Ford to close more Lincoln dealerships, focusing on fewer, boutique showrooms

Ford has redesigned and renamed dozens of its Lincoln stores u0022vitrine dealerships,u0022 derived from French for glass display case. This image was taken at the Sanderson Lincoln Boutique in Scottsdale, Arizona. Lincoln is reducing the number of its sites nationally.

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

The Dearborn, Michigan-based company 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 reduced 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.

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Ford has redesigned and renamed dozens of its Lincoln stores "vitrine dealerships," derived from French for glass display case. This image was taken at the Sanderson Lincoln Boutique in Scottsdale, Ariz. Lincoln is reducing the number of its sites nationally.

"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 a 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's needs.

◾ Equipped with either two-, four- or six-vehicle displays, vitrine adds 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 company says.

◾ 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.

Ford has redesigned and renamed dozens of its Lincoln stores "vitrine dealerships," inspired by the French word for glass display case. This image was taken at the Sanderson Lincoln Boutique in Scottsdale, Ariz. Lincoln is reducing the number of its sites nationally.

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

'It does make sense'

The Lincoln move is smart and necessary, branding experts told the Free Press, part of the USA TODAY Network.

"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."

Marcus Collins, a professor at the Ross School of Business at the University of Michigan, is an expert in digital advertising, social marketing, and brand strategy. He is also co-director of the Yaffe Digital Media Initiative.

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

"You look at Apple, and a good portion of the Apple success is the stores," he said. "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.

Ford has redesigned and renamed dozens of its Lincoln stores "vitrine dealerships," derived from French for glass display case. This image was taken at the Sanderson Lincoln Boutique in Scottsdale, Ariz. Lincoln is reducing the number of its sites nationally.

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: Why are more Lincoln car dealerships closing in 2024?