In the space of a few days, in February, Brazil lost two of its most brilliant business minds in the retail sector. Luiza Trajano Donato, founder of retail giant Magazine Luiza, passed away on February 12, at 98, and Abílio Diniz, the co-founder of Pão de Açúcar, Brazil’s largest supermarket chain, died on February 18, at 87.
Luiza Donato
Donato was born on September 20, 1926 in Cristais Paulista (SP) and raised by a family of merchants, later moving to neighboring Franca. In 1956, she met and married traveling salesman Pelegrino José Donato. The following year, the couple invested their collective savings from years of work in the purchase of a gift shop, A Cristaleira, in the center of Franca, marking the genesis of a retail empire that would stand the test of time.
Recognizing A Cristaleira’s strong commercial presence in the municipality, clients soon influenced a change of name to Magazine Luiza, honoring the businesswoman herself. Donato’s unwavering commitment to customer service and her strong values of honesty and integrity paved the way for the company’s expansion. In the 1990s, she appointed her niece, Luiza Helena Trajano, to lead Magazine Luiza, remaining a constant presence in the company she founded.
Over the course of more than six decades, Magazine Luiza has grown from a family retail network of electronics and furniture in São Paulo and Minas Gerais to a national, publicly traded retailer and one of the most admired corporate cultures in Brazil. The company has established more than 1,300 stores in 20 Brazilian states, with almost 40,000 employees, generating an annual revenue of R$14.8 billion and boasting a successful online presence.
Donato will be remembered as a businesswoman who built a empire from the ground and turned her passion for retail into an organization that endures.
Abílio Diniz
Abílio dos Santos Diniz, born December 28, 1936, in São Paulo, is one of the most notorious Brazilian businessmen. He is the former chairman of the Brazilian retail chain Grupo Pão de Açúcar (Companhia Brasileira de Distribuição). Abílio Diniz is the father of former Formula One driver Pedro Diniz, whose career was largely funded by his father’s personal wealth and sponsorship connections. Abílio also competed as a race-car driver in his youth and won the 1970 Mil Milhas Brasil with his brother, Alcides. Diniz became one of the wealthiest individuals in Brazil. In 2015, Forbes ranked him 369th richest person in the world and 9th in Brazil with a personal net worth of $4.4 billion, up from $3.7 billion last year.
Diniz’s father, Valentim Diniz, a Portuguese immigrant, founded the company Pão de Açúcar, which grew into a major retailer, Companhia Brasileira de Distribuição. In 2002, Diniz sold a large stake to the French company Casino Group for an estimated $860 million and stepped down as CEO, but remained as chairman. In 2009, in one of the most expensive transactions of the Brazilian business history, Grupo Pão de Açúcar bought Casas Bahia from Samuel Klein, giving Abílio control of Pão de Açúcar, Casas Bahia, Ponto Frio and Extra Hipermercados. In 2012, Casino Group took control of Grupo Pão de Açúcar and Diniz remained as chairman only.
Abílio was also victim of a famous kidnapping. In December 1989, the Brazilian billionaire was the victim of a kidnapping that took place on the day of the first Brazilian democratic presidential elections after a military dictatorship. His kidnapping was meant to raise money for Sandinista guerrillas.
It was followed by an almost immediate police rescue that revealed that among the kidnappers were Chileans, Argentinians and two Canadians.
The candidates were Luiz Inácio Lula da Silva, founding member of the Workers’ Party and Fernando Collor de Mello, the right wing party candidate running for a newly formed National Reconstruction Party. As there was a prohibition of any political party of talking to the media on the days prior to election day, Luiz Inácio Lula da Silva’s party had no opportunity to clarify the accusations that his party (PT) was involved in the kidnapping.
Fernando Collor de Mello Won this election.
Abílio Diniz leaves a legacy that will be remembered and cherished in the Brazilian retail industry and beyond. His contributions to the sector and his role in shaping the future of retail in Brazil and internationally have left an indelible mark.