Brazil Loses Two of Its Greatest Business Minds in the Retail Sector

In just a few days in February, Brazil lost two of its brightest business minds in the retail sector. Luiza Trajano Donato, founder of the retail giant Magazine Luiza, passed away on February 12 at the age of 98, and Abílio Diniz, co-founder of Pão de Açúcar, Brazil’s largest supermarket chain, died on February 18 at the age of 87.Luiza Donato 

Donato was born on September 20, 1926, in Cristais Paulista (SP) and raised by a family of merchants, later moving to the 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 downtown Franca, marking the beginning of a retail empire that would withstand the test of time.
Recognizing A Cristaleira’s strong commercial presence in the municipality, customers soon influenced a name change to Magazine Luiza, in honor of 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 more than six decades, Magazine Luiza grew from a family retail network of electronics and furniture in São Paulo and Minas Gerais to a publicly traded national retailer and one of Brazil’s most admired corporate cultures. The company established over 1,300 stores in 20 Brazilian states, with nearly 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 an empire from scratch and turned her passion for retail into an enduring organization.Abílio DinizAbílio dos Santos Diniz, born on December 28, 1936, in São Paulo, was one of Brazil’s most notorious entrepreneurs. He was the former president of the Brazilian retail chain Grupo Pão de Açúcar (Companhia Brasileira de Distribuição). Abílio Diniz is the father of former Formula 1 driver Pedro Diniz, whose career was largely financed by his father’s personal wealth and sponsorship connections. Abílio also competed as a race car driver in his youth and won the Mil Milhas Brasil in 1970 with his brother, Alcides. Diniz became one of the richest individuals in Brazil. In 2015, Forbes ranked him as the 369th richest person in the world and the 9th in Brazil, with a personal fortune of $4.4 billion, up from $3.7 billion the previous year.
Diniz’s father, Valentim Diniz, a Portuguese immigrant, founded the Pão de Açúcar company, which grew to become a major retailer, Companhia Brasileira de Distribuição. In 2002, Diniz sold a significant stake to the French company Casino Group for about $860 million and stepped down as CEO but remained as chairman. In 2009, in one of the most expensive transactions in Brazilian business history, Grupo Pão de Açúcar acquired Casas Bahia from Samuel Klein, giving Abílio control over Pão de Açúcar, Casas Bahia, Ponto Frio, and Extra Hipermercados. In 2012, Casino Group took control of Grupo Pão de Açúcar, and Diniz remained only as chairman.
Abílio was also a victim of a famous kidnapping. In December 1989, the Brazilian billionaire was kidnapped on the day of Brazil’s first democratic presidential elections after the military dictatorship. His kidnapping aimed to raise money for Sandinista guerrillas.
It was followed by an almost immediate police rescue that revealed that among the kidnappers were Chileans, Argentines, and two Canadians.
The candidates were Luiz Inácio Lula da Silva, a founding member of the Workers’ Party, and Fernando Collor de Mello, the right-wing candidate running for the newly formed National Reconstruction Party. As there was a prohibition on any political party speaking to the media in the days leading up to the election day, Luiz Inácio Lula da Silva’s party had no opportunity to clarify accusations that their party (PT) was involved in the kidnapping.
Fernando Collor de Mello won that election.
Abílio Diniz leaves a legacy that will be remembered and valued 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.