Lexus considers satellite network expansion
Lexus is examining the possibility of delivering cars through servicing outlets or smaller satellite retailers as cost-effective ways of increasing its geographic footprint. The brand is also increasing investment in pop-up stores and shopping centres to feed better and more leads to retailers.
Lexus currently operates a network of 46 franchised sites run by 23 partner retailers.
“We want high-quality viable representation and our plan is to work with retailers to have the right representation in a specific geographical area. If it is a small marginal town there is no sense in having a fully blown dealer, it makes sense to have a smaller version with less overheads,” said Lexus UK director Ewan Shepherd.
“That could be a ‘lite’ version of a Lexus dealer to extend our reach, a traditional dealership on a smaller scale, or [the franchise holder] may decide to do a used car and service outlet in a town, like a satellite operation within their territory.”
Lexus has increased its budget in off-site promotion such as shopping centre displays by £1m this year to feed retailers more leads as an attempt to push the brand into more communities.