Horst Paulmann, the businessman who transformed retail in Latin America, has died.

Horst Paulmann, the German businessman who turned a family restaurant into Cencosud, one of the largest retail conglomerates in Latin America, passed away this Tuesday at the age of 89 in Germany. His legacy as a visionary leader marked the development of the retail sector in the region, expanding his business to supermarkets, department stores, and shopping centers in several countries.

"With deep sorrow and affection, we announce the passing of Mr. Horst Paulmann Kemna, founder of Cencosud. His vision and leadership leave an indelible mark on the country and thousands of employees," the company stated in a release.

From the family restaurant to a commerce giant

Born in 1935 in Germany,  Paulmann emigrated to Chile after World War II. In 1957, after his father's death, he took over the management of a restaurant in Temuco with his brother Jürgen. This business would be the starting point of his future expansion.

In the 1960s, he turned the restaurant into a supermarket chain, but in 1976 he took an independent path, moving to Santiago and founding Cencosud in 1978. His ambition was reflected in the company's name, which means South American Shopping Centers.

His first major international challenge came in 1982, when he expanded to Argentina during an economic crisis. In 1988, he opened his first shopping center in the country, consolidating his reputation as a bold and strategic businessman.

The Costanera Center and its impact on Santiago

One of Paulmann's most emblematic projects was the Costanera Center, a commercial complex that includes the Gran Torre Santiago, the tallest skyscraper in South America at 300 meters tall.

Started in 2006, the construction of the Costanera Center faced delays and criticism, both for its high cost and the challenges of occupying all its floors. Despite this, it became an icon of the Chilean capital and a testament to the entrepreneur's ambitious approach.

Cencosud: An expanding empire

Under Paulmann's leadership, Cencosud grew rapidly.  Between 2002 and 2012, the company made 19 acquisitions in markets such as Brazil, Argentina, Peru, and Colombia, exponentially increasing its revenues.

In 2004, Cencosud went public on the Santiago Stock Exchange to finance its expansion.  In 2008, during the financial crisis, Paulmann injected 150 million dollars of his own wealth to stabilize the company.

However, his aggressive growth strategy caused a high level of debt, which forced the company to sell assets in 2017 and spin off its shopping center division in Chile. In 2022, Cencosud entered the U.S. market with the acquisition of The Fresh Market Holdings.

Paulmann led Cencosud until 2021, when he handed over the presidency to his daughter Heike Paulmann. In 2022,  he left the board and assumed the title of honorary president.  According to Bloomberg, his fortune reached 5.5 billion dollars.

Recognitions and challenges in the retail sector

In 2018,  a Deloitte study ranked Cencosud 68th among the largest  retail companies in the world, surpassing giants like Femsa Comercio and Falabella.

However, the company also faced significant challenges. During his last years at the helm of Cencosud, Paulmann received criticism for the slow adoption of e-commerce and the high costs of projects like the Gran Torre Santiago. Despite this, the company's shares have shown a strong recovery in recent years.

A visionary who marked an era

Horst Paulmann will be remembered as one of the most influential businessmen in Latin America. His ability to identify opportunities and expand his business during times of crisis made him a benchmark in the retail sector.

With his passing, a chapter in the business history of the region closes, leaving an indelible legacy in the industry and in the communities where Cencosud operates.