What are the benefits to Finlay?
A. As a lessee, Finlay benefits from the host stores reputation, customer traffic, advertising, credit services, and an established customer base. Finlay also avoids the substantial capital investment in fixed assets typical of stand-alone retail formats. These factors have generally enabled Finlay s new departments to achieve profitability within their first twelve months of operation. Finlay further benefits because net sales proceeds are generally remitted to Finlay by each host store on a monthly basis with essentially all customer credit risk borne by the host store.
