Walmart’s German sex shop neighbor problems

Thanks for downloading the free Persian Rug Dealer Referral Report last Friday.

From all the positive comments I’ve been getting about it, I see I was not the only one to get an icy reception from Persian rug dealers.

But if you think Persian rug dealers are tough check this out…


$480 Billion dollars a year.

That’s how much Walmart makes in revenue every year.

As the biggest retailer in the world, you’d figure they know their business inside-out.

I thought so too.

That was until I found out they had their blue, white and yellow “butt” served to them on a silver platter.

The Gory Details…

The year was 2004.

By that time Walmart had successfully expanded into Mexico and the UK.

In those countries they used the “shock and awe” approach where they find and buy the best run retail chains in the country.

The strategy already worked well in two other countries so there was no reason to suspect it wouldn’t work again.

So Walmart bought their way into Germany by purchasing two retail chains and giving them 95 locations right off the bat.

After the purchase there was a lot of work to do in renovating the stores, overhauling distribution, finding suppliers and installing Walmart’s proven methodology.

Once all that was completed, the problems started.

First of all many of the stores in the existing chains were not always located in desirable areas ( some located next to the infamous German sex shops).

Next, Germany has a law that says you cannot sell a product below it’s cost. That meant one of Walmart’s key marketing strategies was toast.

Then while Walmart beefed up it’s staff, all it’s competitors slashed their customer service – allowing them to undercut Walmart by 10 to 25%.

This created an environment Walmart was NOT used to playing in.

Then the REAL fun began.

Walmarts employees didn’t like the morning calisthenics or the required chanting of “Walmart, Walmart, Walmart!”

And management’s insistence on employees always smiling backfired because in Germany smiling at customers is seen as flirting.

German customers had a lot of issues with Walmart too.

For one thing they hated how long it took to shop (it went against their heritage of efficiency).

Nor did they like Walmart’s grocery bagging service because Germans don’t like anyone touching their food.

If that wasn’t bad enough, Walmart had to contend with unions. Walmart is non-union whereas Germany has a strong union culture.

None of the things that made this retail giant successful in the US worked in Germany. In fact it had the complete opposite effect.

So after almost a decade of problems, low revenue and culture clash, Walmart shut its operation down and scurried out of Germany.

The lesson here?

No matter how successful, how smart or how much experience you have, there are situations where all that will only get you your “butt” handed to you on a silver platter.

Look I know.

It happened to me when I wanted to get all the high end rug dealers to recommend my rug cleaning company to their customers.

Everything I ever did before to successfully secure other major referral sources fell flat with fine rug retailers.

I did a compete and total German “Walmart” with these guys.

But unlike Walmart I did manage to figure it out.

I figured out what high end rug dealers really want and how to be the ONLY to give it to them.

I figured out what to say to them, but more importantly, what never, ever to say.

I even figured out how to make it their idea to recommend me (without ever saying a word about it).

I figured this all out so you don’t have to AND it’s all outlined for you step-by-step in a free report you can get here…

Stephen “Dusty” Roberts

P.S. So what else will you find in this Persian Rug Dealer Referral report? Here are a couple more highlights…

  • What Principle #16 is and how it can skyrocket your profits
  • How to stand out in the mind of any rug dealer