Retailers spend big to split off Jeep showrooms

The coronavirus pandemic slammed tourist-dependent Las Vegas more than most U.S. cities, but some high rollers are still in town.

A prominent comedian stopped by Jeep Only last week, one of the few standalone Jeep dealerships in the country, and bought a Wrangler that was on display with nearly $19,000 worth of accessories. But not before tacking on $6,800 in additional options.

While that's not a typical sale, co-owner John Grant says the store's sole focus on Jeep has helped it draw fans who can spend big money loading up their vehicles. The dealership, which opened in March, sells T-shirts and plays rock 'n' roll music while paying homage to the brand's past with displays of old Jeeps. Grant said the atmosphere is designed to create an experience for customers.

"This Jeep lifestyle is different," Grant told Automotive News. "In the standalone store, these people are fun, they wear blue jeans, they wear T-shirts, they are definitely in the upper-income model. It is amazing what people will do and what they spend personalizing these vehicles."

He added, with a laugh: "You would almost say it's insane."

After spending a decade consolidating its brands under one dealership roof, Fiat Chrysler Automobiles has been seeking exclusivity in recent years for its highly profitable Jeep brand in certain markets. The automaker is looking to grow Jeep by creating unique shopping experiences for some of its most critical buyers, who continue to drive the brand forward despite an ongoing health crisis.

In Las Vegas, Grant is delivering 100 Jeeps a month, more than double the brand's volume last year at his full-line FCA store across the street.

"I think they appreciate the fact that it's specialized [and] makes them feel better about doing business," said Mike Downey, vice president of Fort Collins Jeep in Colorado, another new standalone dealership. "It just sends a message that we're all about Jeep — we're into Jeeps, just like the customers are. I think it gives them a little more confidence in us."

Some dealers have built standalone Jeep stores while others have remodeled their full-line operations to add Jeep-focused showrooms. FCA says its U.S. retail network has 59 locations that either are standalone Jeep stores or have dedicated Jeep showrooms. The number of standalone Jeep dealerships was steady at 12 from 2016 through 2018 but increased by two last year, according to the Automotive News Data Center.

The automaker hopes having Jeep-centered retail environments, staffed by people who know the ins and outs of the lineup, can help the brand grow by appealing to a wider range of customers. FCA is looking to put more of a focus on Jeep as it prepares for a product offensive that includes the premium Wagoneer and Grand Wagoneer, along with a redesigned Grand Cherokee.

A Wrangler plug-in hybrid is destined for U.S. showrooms by the end of this year and soon could be joined by a V-8-powered Wrangler.

Steve Wolf, dealer principal at Helfman Dodge-Chrysler-Jeep-Ram-Fiat in Houston, said he's planning to make a "big investment" to upgrade his store with a separate Jeep showroom. He's excited about what's in the product pipeline and is looking to swipe customers from General Motors and Ford Motor Co. with the upcoming Wagoneer and Grand Wagoneer.

"That's how committed we are to the future of Jeep," Wolf said. "Our market and our store is really geared for Jeep. We're in a pretty affluent area."

During the National Automobile Dealers Association convention in February, Grant spent a day with global Jeep boss Christian Meunier, who came by the new dealership before it officially opened. He said Meunier is focused on making the Jeep experience "second to none," and separate showrooms help achieve that.

Opening Jeep Only cost about $15 million, an investment that was planned out before COVID-19 struck. But Grant believes the move is paying off by attracting newcomers to the brand. Grant, who said he was given "total autonomy" to build the store how he wanted, encourages other dealers to create a unique environment for Jeep, no matter the scale.

"I'm in the middle of COVID and I'm selling twice as many as I did a year ago," Grant said. "You don't have to spend what I spent, but it's got to be a different, boutique-type atmosphere."

Grant's partner in Jeep Only, Doug Moreland, also co-owns Fort Collins Jeep with Downey. The Colorado store, which cost about $13 million, opened a year ago on the site of an abandoned lumberyard that had become an eyesore.

Jeep customers like having their own space, Moreland said, and specializing in that brand takes pressure off of salespeople to also keep track of details for Ram trucks or a Dodge Challenger. "It's really made the customer buying experience [and] service experience a lot better for both sides."