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The Last Story wasn't advertised well at all, but in NA I wouldn't say it had poor distribution in the technical sense.  

The game was available at major retailers like Walmart, Bestbuy, Amazon, GameStop and EB Games Canada.  

The publisher in NA, XSeed, even said that The Last Story was their best selling game to date at that time.

Though if Nintendo published and handled the advertising for the game themselves it would have had a larger initial print and likely would have sold more in the end.