How an open-concept evolution in showrooms means more transparency

Open-concept showrooms are not new, but subtle changes to the traditional glass-box design, including highly visible service departments and sales staff working on the showroom floor, provide a more comfortable environment for customers and, quite literally, transparency into the operation.

“Whenever [people] go buy a car, it’s not high on their list of things they love to do,” said Mark Romeo, general manager of Airport Nissan in Brampton, Ont., just outside Toronto. “They always feel they’ve got to make sure they get the best deal.

“An open concept gives them a nice, friendly feeling. There is nothing hidden, and the biggest fear [customers] always have is dealers hide everything. I think this gives more comfort for the customer.”

The open-concept evolution means moving sales staff out of closed-door offices and into the showroom, said Silvia Carfora, CEO of the Weis Group, a Toronto-based architectural firm that works with 14 automotive brands representing 1,038 dealerships in Canada and more than 3,000 dealerships in the United States.

Dealerships used to have “the bullpen concept,” which featured designated workstations and closed offices for sales staff in the back, and desks in the showroom.

“The idea was that an employee or salesperson could sit down with customers in an uncluttered, open desk,” Carfora said. “Since then, it has evolved. It depends on the brand and the era of management. We see continuous evolution on how manufacturers want their dealers to retail vehicles, and in many cases, the dealers will pursue their own processes.

“So, although it may appear that there are more open concepts, it’s actually been a mixed approach for about two decades.”

Ontario-based Zanchin Automotive Group is building a Lexus store in Vaughan, just outside of Toronto, that is scheduled to open in January.

It will feature a showroom with 22-foot (6.8-metre) floor-to-ceiling glass. Management and sales staff will be working on the showroom floor at large, barlike tables.

“It doesn’t give you that come-into-the-principal’s office feeling,” said Laura Zanchin, executive vice-president of the group. “The customers feel a little bit more at ease when they are talking to [sales staff and management].

“Sometimes the customers want to feel comfortable, and they want to have a seat. Sometimes they don’t and just want to do it on the fly.”

In southwestern Ontario, Nissan of Windsor underwent a two-and-a-half-year renovation that was completed in December 2019.

Aside from floor-to-ceiling glass walls, the dealership staff works on the showroom floor.

“That initial impression of when you walk in is bright and light and airy, and that’s a positive,” said Renee Primeau, general manager. The store’s renovation was part of Nissan Canada’s NREDI 2.0 image program, she said.

“You can see right across this whole showroom, whereas before there used to be offices behind that reception desk,” Primeau said. “So it really divided the space, with one side toward the service department, and the other side was more toward the sales area.

“Now it’s all completely open. I’m sitting in my office on the western side of the building, and I can see all the way to the doors on the eastern side.”

SEE CARS, NOT BANNERS

George Kneider, owner of Torontobased Kneider Architects, has designed 18 Jaguar Canada dealerships since 2004 featuring open-concept floor plans.

“We started putting a lot of glass on the outside so people could see the inside, and I refused to let them put any signs on the windows,” Kneider said. “I wanted [the customers] to see the cars [instead of] big banners and all that. Year by year ... we found better ways to do things. ...

“I felt it was making a better relationship between the consumer and the dealer.”

Some of the stores included walkaround space on the upper floor of two-story buildings that provided an unobstructed view of the showroom.

A store’s layout can influence customers’ perceptions of business ethics, said Ryan Robinson, automotive research leader for Deloitte and an industry analyst for almost 25 years.

“If we’re talking about what dealers can do to engender a positive response in the consumer, anything we can do that can tap into that idea that we’re being as transparent as possible is a good thing.

“If we can reinforce that by some of the physical attributes of the dealership, why not? It aligns with what people are expecting from a wide variety of on-site retail experiences.”

OFFICES OFF-PUTTING

Dealer principal Paul Valentine, who recently opened a Volvo store in Calgary, said the pandemic has asserted the need for open work environments.

“It was probably a focus before [COVID-19], but COVID has reiterated the fact people don’t like to go into offices.”

At greenfield Volvo stores, service department customers get a clear view of the service bay, said Julian Pastore, manager, retail development and sustainability at Volvo Car Canada.

“We have a huge bay window [behind the service counter] that lets you look directly into their workshop ... it’s an added layer of transparency ... that gives customers confidence they’re dealing with an organization that is employing professionals and that their shop is just as beautiful as the showroom.”

While the open-concept approach has been more readily embraced by customers, it has taken longer for dealers and automakers to come around, said Valentine.

“It’s been a concept that people have been excited about for 15 or 20 years, but it takes that long for buy-in from the manufacturers and the dealers who have to pay for it. It’s always well received by the customers.

“Nobody ever comes to me and says, ‘Boy, this place is too bright, it’s too light, it’s too attractive.’ It’s what’s expected now.”