Am I overreacting or do I have a right to be upset?

I was at Walmart yesterday shopping with my 2 year old daughter & one of the employees commented that my daughter looked a lot like her granddaughter. I thought that was cute, so I said 'aww, she must be a beautiful girl' & I continued on my way. Well, the employee followed me around the department, meanwhile I thought I was making it pretty obvious that our conversation was over. She finally walked away & I went on with my shopping. A minute or so later, I turned my back on the cart (probably shouldn't have, but hindsight is 20/20) & turned back around & this same employee was running her fingers through my daughter's hair, telling her how beautiful she was. I quickly grabbed the cart, told the employee to leave us alone & left the department. I was in the front of the store by customer service & I see this employee running up to the front of the store, telling me to hold on because she wanted another employee to see how much my daughter resembled her granddaughter. I told her I had to go & she kept telling me to wait. By this time I was creeped out. I went up to the front end manager & she said 'is this your daughter? Miss Debby was just telling us how much she looks like her granddaughter.' Um, really? I explained how inappropriate the employee's behavior was & the manager laughed it off. I went to another manager & was laughed at then too. I finally got to the assistant manager, who also laughed about it but told me to call today & speak to the general manager.