See Lexus Studio by Regency in BC: New Retail Concept Challenges Tradition

Hemmed in by coastal mountains and the ocean, the fast-growing population of BC’s lower mainland has nowhere to build but up. Those who live in these luxury high-rises are perfect potential clientele for the likes of Lexus, buyers interested in EV and hybrid solutions for commuting or adventure, but you can’t just plonk a traditional dealership in the midst of skyscrapers. So how does Lexus plan to court new owners? By meeting them where they are with a new retail concept.

Previously, Lexus operated flagship brand galleries in built-up metropolises like Tokyo and New York City; this new concept is different. While Tokyo’s Intersect by Lexus still exists as a bustling cafe and bistro, the focus there is less about the cars and more about the curated lifestyle that dovetails with the luxury segment. This new space, dubbed Lexus Studio and founded in partnership with local dealer group Regency, is more about the vehicles.

It is not a traditional dealership, but a place that’s intended to occupy the space in the Venn diagram overlap between retail and experiential spaces. Guests are greeted with exceptional hospitality, built around the Japanese concept of omotenashi. This last is not just the idea of offering the kind of greeting you’d expect at a restaurant or when boarding business class, but the kind of attention to detail that Lexus generally brings to, say, the interior quality of an LC500. The brand already has three JD Power awards for service experience, and the Studio will look to exceed this achievement.

The 3900 square foot space is inspired by traditional Japanese architecture, as you’d expect given Lexus’ roots. However, as this is an experimental concept, it doesn’t need to conform to any corporate layout rules that a traditional dealership might do. The main features are curving slatted tongue-and-groove maple panels, each custom cut, and a light feature that emulates shoji, the Japanese lattice and paper structures used as doors and room dividers. Two multi-purpose rooms feature glass with a bamboo motif, fitting as Regency’s mascot is a Panda bear. There’s a small bar at which guests can order a coffee or other refreshment.

It’s an open, welcoming space, staffed by a concierge and a valet as well as two managers. Five vehicles will be showcased here, all of them hybrid or electric. Four product experts will be on hand to answer questions and walk through demonstrations of charging, onboard infotainment functions, or other general questions. None of these will be commissioned sales staff as you’d find in a traditional dealership. No pressure, just information.

While the Studio also presents an opportunity to wow VIP customers with a showcase when taking delivery of a new Lexus, the intent here is more to open the door to new prospects. One of the unpleasant facets of the automotive business is how visiting a dealership can feel overwhelming rather than inviting. At the same time, just scrolling through online websites doesn’t let you get a tactile sense of the cars themselves. The online brochure might wax rhapsodic about the quality of the leather seats, but you’re still going to want to sit in them: the Studio provides an place for engagement without the sales pitch.

While there’s not quite room here for the full Lexus range, twelve stalls with chargers are kept in an underground bay, ready to be brought up upon request. Shoppers in the area can make an appointment or just walk in, with a planned grand opening set for summer of this year.

Lexus representatives said they will be watching this space closely to see what results come out of it. Given similar growing city densification in Toronto and Montreal, the Lexus Studio could be the template for urban dealerships going forward, at least in the luxury segment. Having said that, indications are that this is to be a multi-year stand alone project, some of the same slow caution that marked Lexus’ original introduction to the North American market with the LS400. That particular experiment has certainly proved successful. This new approach to luxury retail might be the right move too.

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