Okay who says the preorders of 700,000 were retailers and not consumers? I'm under the impression from every site I've read the story that it's a consumer number. like this:
http://www.infendo.com/wii/super-mario-galaxy-preorders-hit-700kin-japan/
And again the same blog that reported 130,000 first day sales also reported the 700,000 preorder figure.