WHOLESALE DISTRIBUTION

Wholesale trading represents a fundamental rung on the distribution ladder for products in Spain. Frequently, the figure of the wholesaler presents a high degree of lack of knowledge for the general public. In effect, the consumer is familiar with the brands of major manufacturers and major retail logos. However, he often ignores the relevance of the intervention of wholesalers in the product distribution circuit.

Wholesale trade in Spain is confronting a series of changes that affect distribution in our country, such as the sophistication of the technical elements used in distribution and in logistics, price differentiation, the re-definition of the role of the various participants in the distribution chain, among other factors that carry with them a degree of increased demands for companies doing business in this sector.

A company doing business in wholesale trading sees the need to collaborate, on the one hand, with producers and manufacturers and, on the other hand, with retail distributors. In this context, the evolution and innovation in wholesale trading leads to a greater and greater specialization of wholesale traders by products, or by groups of customers, or by manufacturer brands, even developing own brands on occasion. Also of capital importance is the development of customer services, apart from the intervention in the sale and purchase of commodities, such as collaboration in promotion and advertising services, and market training, post-sales maintenance, use of logistical platforms, computerization, etc. Hence, wholesale traders see, on occasion, the need to associate themselves with purchasing centres or manufacturer associations or even pursuant to schemes of franchising in order to optimize their processes and achieve economies of scale.

In this greater and greater sophistication of wholesale trade, Gómez-Acebo & Pombo advises on all legal aspects related to this business: employment, financial, tax, commercial contracting, transport, logistics, real property and urban planning aspects, purchasing centres, commercial alliances, franchises, exchanges of information with other wholesalers, manufacturers and retailers, products liability, etc.

We advise on the various formats of wholesale distribution networks in line with their peculiarities. For example, in relation to the specific problems of cash and carry outlets, which present characteristics that bring them close to retail trading inasmuch as they are outlets open to the public: relationship with suppliers, advertising, urban planning and real property aspects, etc.

Our experience, for example, allows having a specific tool for auditing the business of wholesalers from the standpoint of Antitrust/Competition Law.