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ally belonged to the regular or independent wholesaler. A century ago the wholesaler was the dominant factor in merchandise distribution. Manufacturers were much smaller generally than they are today, hence they required the sort of service the wholesaler had to offer. Retailers too were normally independent, small-scale operators who relied heavily on the wholesaler for the merchandise they sold. Direct selling or buying as we think of it today was practically nonexistent for most manufactured commodities. All imported commodities flowed through wholesalers' hands and most exports were sold through wholesale exporters. In the rural areas and in communities adjacent to agricultural activity, retail merchants traded directly with farmers, as they continue to do in many parts of the country. Today the wholesaler remains one of the most important links in the chain of distribution, but a far weaker link than was true in the past. His position has been challenged and weakened from two directions. (I) The expansion of manufacturing into gigantic mass-producing industries generated pressure for ever increasing sales volume. The wholesaler was unwilling or unable to devote the attention to any one producer's lines which the latter deemed necessary. Hence, manufacturers sought to shortcircuit or side step the wholesaler by various means of direct selling. These means run all the way from advertising and sales promotion directed at consumers and retailers to the establishment of elaborate branch wholesale houses throughout the nation. (2) The development of large-scale retailing in the form of mail order houses, department stores, and chain systems, especially since the beginning of the century, has generated pressure for direct purchasing in the hopes of securing lower prices. It is with the last of these, the chain stores, and their competitive impact on the wholesaler that this article is concerned.
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