thus it is clear that the predominant organization , particularly in the distribution of manufactured goods , is the wholesale merchant who carries stocks . in some trades - e.g , hardware - he is known as a factor . besides owning and warehousing the goods , the wholesaler may process them in some way . this is chiefly the case with agricultural products . a tea merchant blends and packets tea ; a seeds merchant cleans and sorts seeds obtained from growers . not all intermediaries ( whether merchants or agents ) actually handle the merchandise in which they deal ; they may merely provide a link between a source of supply and the demand for it . the performance of the wholesale merchant &apos;s true functions ( which may include such services to retailers as communications , selection , stockholding , credit facilities , and transportation ) requires a heavy capital outlay . only by operating on a large scale can the large overhead costs be absorbed in the turnover , so as to produce a reasonable net profit . consequently it is not surprising that the 1950 census showed that over four-fifths of the trade of merchants was handled by wholesalers each with an annual turnover of over &amp;pound;100,000 . though in discussing wholesalers we generally assume that the function will be carried out by a single firm , this need not be so . the task may be split up between two or even more intermediaries . in some trades , particularly horticultural products and fish , a system of primary and secondary wholesalers often exists . the former is essentially a collecting organization , though he may also process , grade , or pack before reselling in bulk to the secondary wholesaler , who performs all the other services normally associated with wholesaling . it is convenient to classify wholesale merchants , according to the extent of the sales territory covered by the business . thus many of the larger firms are national wholesalers , distributing goods to every part of the country . they carry large stocks , and often have their own brands , and operate a comprehensive delivery service over a wide area . a second class covers only specific parts or regions of the country - perhaps northern England or Scotland . the local wholesaler confines his custom to a much smaller area - often a radius of a few miles from his warehouse . the local and regional wholesalers usually offer a more restricted service as compared with the national wholesaler . some wholesalers have a number of branches or stock-rooms up and down the country . general and specialist wholesalers . wholesalers may also be classified according to the range of stock carried . though generally they specialize in one group of commodities , there is considerable variation in the extent of this specialization . perhaps the most important section of the wholesale trade , both in terms of numbers of firms and turnover , is that of the general wholesalers . they are analogous to department stores , as there are a number of departments ( frequently twenty to twenty-five ) selling a wide range of rather unrelated commodities , with an extensive choice within each commodity group . such firms may employ five hundred or more inside staff and up to one hundred travellers . most general wholesalers occupy large buildings in the central areas of cities , and also normally have branches or stock-rooms strategically situated in other large towns . the main attraction of the general wholesaler is , of course , the ability to bring together for the convenience of the retailer a wide range of merchandise under one roof . for a number of years the general house has tended to concentrate attention on a related group of commodities . when this specialization is carried a stage farther the wholesaler becomes a specialist house . the term , in fact , may imply anything from a wholesaler carrying one commodity group to one with several hundred , the emphasis being on the similarity of commodities rather than on their number . the specialist house is usually of moderate size - in the textile trade , for example , having five or six departments . millinery , piece-goods , lace , and children &apos;s wear seem particularly suited for this treatment , and in extreme cases specialists deal in only a few articles , particularly if they become sole distributing agents . the development of the specialist is partly the result of manufacturer pressure for more concentrated selling , and partly through his ability to become an authority on quality and value in his particular line of business . cash-and-carry wholesalers . this form eliminates a number of operations traditionally associated with wholesaling in return for lower prices . there are no credit facilities or delivery services available , and there is rarely any outside selling . such wholesalers are chiefly found in sections of the food trade , household goods , toys , and market lines ( very cheap merchandise for street markets ) - wherever a commodity has a high rate of stock-turn potential . cash-and-carry wholesalers are likely to increase in number . agents , brokers , and other small wholesalers . there are many small firms , trading under various titles , which , though they may acquire title to the goods they sell , either never actually hold them or , if they do so , only transfer them without further processing or servicing . in the building trade such a trader is picturesquely described as a brass plate merchant , and a similar type of intermediary appears in the clothing trade , where he sometimes acts as a speculator entering and leaving the trade according to the market . the commission merchant , as he is sometimes called , operates without stock ( and frequently on credit ) , selling entirely from manufacturers &apos; samples and placing orders only sufficient to cover his sales . on the other hand , the manufacturer &apos;s agent carries out functions similar to those of the wholesaler &apos;s representative , but , unlike the latter , he is self-employed , and is remunerated by a service fee , or , more usually , by a percentage commission on all sales made . the agent is usually given the sole rights in his particular area . agents are primarily used in selling to wholesalers or to central offices of chains of shops . they enable a manufacturer to be permanently represented in these areas by people familiar with business conditions there , and they save him the expense of establishing branches . co-operative wholesaling . by far the largest units in the wholesale trade are the co-operative wholesalers . there are two main societies , for England and Scotland respectively , and they exist to serve the many retail co-operatives , which provide nearly all the capital and exercise control . in return the local societies receive dividends on their purchases . the co-operative wholesale society , with headquarters in Manchester and four big branch depots , has been in existence for nearly a century . the Scottish wholesale was formed shortly after . these two societies have established their own factories , producing goods in 1957 worth just over &amp;pound;160 m , chiefly for producing foodstuffs and household goods . the C.W.S owns ships , farms , and plantations , transacts considerable banking business , and shares with its Scottish counterpart the control of the co-operative insurance society . the two societies also own and control the English and Scottish joint C.W.S. , which performs the special services of tea- and coffee-blending and cocoa and chocolate production for them . in 1938 one-tenth of all Britain &apos;s imports of food reached housewives by way of the C.W.S , and more than half of the goods was purchased direct from the overseas markets by the buying organization of the society , which has depots in many countries . the C.W.S is controlled by an elected board of directors of twenty-eight , seven of whom retire annually . all are full-time salaried officials . the board meets weekly in Manchester , London , or Newcastle . it is one of Britain &apos;s biggest businesses , since over three-fifths of the goods sold by retail societies are obtained through the C.W.S , and its turnover in 1957 amounted to about &amp;pound;454 m . wholesaling and integration . one of the most important trends in distribution in the twentieth century has been the increasing desire of manufacturers to control the wholesaling functions themselves . this they have usually achieved by establishing their own wholesale department and depots where necessary , though occasionally they have acquired existing wholesale organizations . some wholesalers seeking to maintain their traditional position have adopted the defensive policy of integrating with certain manufacturers . such vertical expansion has been made chiefly to direct and maintain the supply of the most profitable lines within the framework of the organization . on the other hand , the large retailer , particularly if he has many outlets , may decide to engage in wholesaling ; in fact , many of the present large wholesale houses had their beginnings as retailers . the wholesale warehouse is then often operated as an ancillary concern ( generally a subsidiary company ) , perhaps under a different name . an existing wholesaler may be taken over . some large groups , such as Debenhams , and the great universal stores , have several wholesale subsidiaries . in a few trades , such as fruit and tobacco , firms buy merchandise in bulk for their own shops and resell what they do not need to smaller shops in the district . in such circumstances they are primarily retailers , and a few use the terms wholesale or warehouse as a customer-catching device . while wholesalers are generally prepared to make direct sales to certain classes of final customer - e.g , schools and large industrial firms - some have established a special department to sell direct to the public on certain conditions , such as after a proper introduction by a retailer . other wholesalers have expanded forward into retailing by the requisition of shops to meet the threats of a changed pattern of distribution and perhaps to make a double profit on each transaction . this policy has aroused considerable rancour , even when the shop takes only part of its merchandise from the parent , and has weakened wholesale-retail co-operation . location of warehouses . the distinctive premises of the wholesaler are , of course , the warehouse , since normally large stocks must be carried . the premises are generally utilized in a strictly practical manner , since the wholesaler &apos;s appeal is to the businessman . a wholesale merchant &apos;s business can not be set up anywhere ; his warehouse is of most service to his customers if they can reach it easily and quickly . consequently it is usually established in a city which is the commercial centre for the surrounding district . London is the biggest centre of wholesale textile distribution , with Manchester not far behind . in a large city it is usual to find those of one trade located in a particular quarter or street , particularly if there is a market or exchange near by . thus in London , Mark Lane is the centre for corn merchants , while in Manchester all the big textile houses are found in the environs of Piccadilly . this concentration of trades of each class is convenient both to customers and to manufacturers &apos; salesmen . organization . though a few small businesses , particularly those specializing in certain kinds of business - e.g , millinery , trimmings - are run by single traders , and the partnership is still fairly frequently met with , the most general form of proprietorship is that of a limited company . this is mainly on account of the heavy capital requirements of the trade . wholesale directors are almost invariably executive or working directors , with full responsibility for a particular function . the scope of the wholesaling task is indicated by a few facts about wholesale textile distribution . large wholesalers carry an average stock of &amp;pound;1,000,000 ; they dispatch approximately 2000 parcels a day to various parts of the country for their 10,000-15,000 retail accounts , and receive supplies from anything up to a thousand suppliers from time to time . moreover , the documentation and handling of each customer &apos;s order may involve thirty-two separate operations , many of which must be repeated in reverse if the goods do not comply with the retailer &apos;s requirements . whatever the merchandise carried , the organization broadly resembles that of a big department store , each department forming a separate unit under a departmental manager . frequently there are four main departments : buying , warehousing , selling , and administration . there are usually separate buyers responsible for the requirements of each section , but their activities are co-ordinated by the purchasing department , which also deals with the paper-work . warehousing is a specialized job , and may include assembling , grading , breaking bulk , and packing . the wholesaler provides a selling organization for the manufacturer , and most of this selling is done by trained travellers . but the wholesaler &apos;s showrooms may also be very important : the retailer is offered a huge stock and variety of merchandise which no other system could bring to him under one roof . 