In the mid-1990s, Walmart tried with a large financial investment to get a foothold in the German retail market. In 1997, Walmart took over the supermarket chain Wertkauf with its 21 stores for DEM750 million (equivalent to DM909 million in 2016) (€375 million) and in 1998, Walmart acquired 74 Interspar stores for DEM1.3 billion (equivalent to DM1.55 billion in 2016) (€750 million).

The German market at this point was an oligopoly with high competition among companies which used a similar low price strategy as Walmart. As a result, Walmart's low price strategy yielded no competitive advantage. Also Walmart's corporate culture was not viewed positively among employees and customers, particularly Walmart's "statement of ethics", which restricted relationships between employees and led to a public discussion in the media, resulting in a bad reputation among customers.

In July 2006, Walmart announced its withdrawal from Germany due to sustained losses. The stores were sold to the German company Metro during Walmart's fiscal third quarter. Walmart did not disclose its losses from its German investment, but they were estimated around €3 billion.

-- Wikipedia article on Walmart

I was watching the German media at the time and one of the major reasons why many boycotted Walmart was the fact that they were mistreating their American employees. In 2014 Germany introduced a minimum wage that was determined and will be determined in regular intervals by an independent panel of experts it currently is at 8.50€, in 2015 the economy grew, unemployment reached a twenty-year low and Germans are getting paid a fair living.

But why are Germans so annoyed with companies that don't pay a fair living wage for a 40hr work week? Because big companies were manipulating the market by collectively paying wages that are too low - that would not be archieved if the idea of a free market was followed. This kind of wage dropping is no different than the government getting itself a cheaper price. It was and has always been a manipulation of the free market, no better than any other act were the market it manipulated.

You write as if these stores and jobs are lost forever, as if there was no demand anymore for food in those places. Another supermarket chain will come in, one that can withstand the free market of labor and be a success story. Supermarkets still exist in Germany, and they sell high quality products for low prices. They put pressure on producers to cut profit margins and hire less people but pay those who they do hire a fair wage. And with that they are expanding internationally.

Being libertarian means arguing for a free market - not one dominated by big companies and their interests.