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Dear Mr. Thomas...... It depend on the product's nature. Any product can be distributed either way. The trend and norms for product distribution says
If there is a new product launched and the marketing strategy is to make it a big brand in shotest possible time, you need to make it available at every retail shop whether it has a chain or not. Because when the marketign team generates the demand, the customer should get the product from nearest shop.
If the product is quite established and you planned to further expand the business or to further explore the market, ensure to make availble the product to every wholesaler. The Wholesaler will actually take your product to those retail shops where you were unable to reach still or to those retailes where you are unable to complete the demand.
Have a good day!