Lexus shakes up premium dealership model – in Hobart

As the consumer universe continues its seismic shift away from traditional retail models, car-makers have been following the bouncing ball in an effort to remain relevant and engaged with an increasingly diverse and – in many cases – absentee customer base.

From Subaru’s shopping centre pop-ups and one-off internet-only model sales to the glittering sophistication of Genesis’ city-focused boutiques, both car manufacturers and car dealerships now need to pivot once more to react to the changes wrought by the COVID-19 pandemic.

The two-year trail of lockdowns and supply chain nightmares has once again reset the bar for consumer/brand interaction, where superior service will need to intersect with timely supply – especially with premium customers.

Add in the recent ripples in tree/sea changes by wealthier Australians looking to escape urban-centric lockdowns, and large dealership models that serve large population centres may need to be supplemented by online sales or smaller satellite operations.

A recent study from the Australian Government Centre For Population shows that there has been a net shift in migration towards regional areas over 2020/2021. While escaping lockdown is a contributing factor, the rise of flexible working means that remote employees can – and are – moving out of the cities and taking their incomes with them.

The news that Lexus of Tasmania – the state’s only Lexus dealership, located in Hobart – will open the doors on a small, intimate and stylish take on the traditional dealership could potentially be regarded as the beginning of a shift away from a more traditional floor model that has served the Japanese luxury car brand very well for the last 30 years.

But that’s not the case, according to David Jeary, the dealer principal at Lexus of Tasmania and the group managing director of Primewest Motor Holdings Group which runs Lexus of Perth.

“We are committed to providing Tasmanians with the best possible luxury car experience and are committed to creating long-term relationships as we grow the Lexus luxury lifestyle brand here,” he said.

Lexus Australia chief executive John Pappas said Lexus of Tasmania is a pioneering luxury lifestyle space that showcases the progressive luxury of Lexus and its vehicles through cutting-edge design and craftsmanship.

“The new Lexus of Tasmania sales suite exemplifies the Lexus commitment to customer care and contemporary style, with an identity that is distinctively Tasmanian,” said Pappas.

“It is an inspiring space where Lexus is making luxury personal by fostering interaction among people, and between people and the style, performance and technology of Lexus vehicles.”

The new location, housed in a swanky new Hobart precinct known as The Rox Building, holds just two vehicles, but it’s what else it entails that sets it apart from the traditional notion of a dealership.

Billed as a “lifestyle hub unlike any other in Australia” and designed by Tassie architects Core Collective, it will have a focus on local arts and artisanship, with locally designed and made furniture adorning the space, which can also be co-opted for art exhibitions and the like.

A full-size commercial kitchen, for example, was designed in consultation with local chef Luke Burgess and turn the venue into a pop-up restaurant, allowing Lexus to host up to 10 guests for bespoke dining events, celebrity engagements and more.

Surrounded by Tasmanian oak on the walls and polished concrete floors, potential buyers are treated to a virtual showroom in which they can configure and view Lexus models via the latest audio-visual tech.

All of this complements the brand’s Encore aftersales service, which provides owners with the option to borrow a Lexus in different states among other ‘money-can’t-buy’ additions.

Being surrounded by high-end residential apartments also gives the Hobart storefront a unique spin on the traditional automotive model.

The Rox Building dealership is, however, not an indication of a shift in the way that Lexus will roll out future dealerships, according to a Lexus Australia spokesperson, who said that Lexus of Tasmania should be viewed as a new and unique way of reaching customers in a particular location, rather than a pivot away from a more traditional model.

As retail continues to change, though, the smaller and more intimate car showroom is likely to become more prevalent as dealers and brands look to tighten the loop more tightly between customer and store front.

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