Horst Paulmann

Horst Paulmann Kemna (March 22, 1935 – March 11, 2025) was a German-born Chilean billionaire businessman who founded Cencosud, the largest retail company in Chile and the third-largest publicly traded retail company in Latin America. From a family restaurant in the small southern Chilean city of Temuco, Paulmann built a retail empire spanning supermarkets, department stores, home improvement centers, and shopping malls across Chile, Argentina, Brazil, Peru, and Colombia.

His signature achievement was the development of the Costanera Center in Santiago, which includes the tallest skyscraper in South America and the largest shopping mall in the region. At the time of his death in March 2025, Cencosud employed more than 150,000 people across five Latin American countries.

Paulmann's life and legacy remain controversial. His business achievements are shadowed by his family's Nazi past—his father was an SS officer who fled Germany after World War II—and by allegations of connections to the notorious cult settlement Colonia Dignidad and support for the Pinochet dictatorship.

Early life and family background

Horst Paulmann Kemna was born on March 22, 1935, in Kassel, Germany. He was one of eight children born to Werner Paulmann and Hilde Kemna.

His father, Werner Paulmann, was an SS-Obersturmbannführer (Lieutenant Colonel) in Nazi Germany. After the defeat of Nazi Germany in 1945, the Paulmann family faced the prospect of denazification trials and potential prosecution at Nuremberg.

Flight from Germany

In 1946, when Horst was eleven years old, the Paulmann family fled Germany to escape potential prosecution. They crossed the Alps into Italy, where many former Nazi officials and collaborators found refuge through what became known as "ratlines"—escape routes facilitated by sympathetic clergy and other networks.

From Italy, the family emigrated to Argentina in 1948, settling initially in Buenos Aires. Argentina under Juan Perón had become a destination for thousands of former Nazis and collaborators seeking to escape European justice.

Childhood labor in Argentina

At age thirteen, young Horst began working to help support his large family. In Buenos Aires, he worked as a telephone operator and later made wooden toys. These early experiences of manual labor and self-reliance would shape his later business philosophy.

In 1950, when Horst was fifteen, the family made another move, relocating to Temuco in southern Chile. His father obtained a position as a franchisee at the Club Alemán (German Club) and at the Club de La Unión, institutions that served Chile's German immigrant community.

Education

Paulmann's formal education was limited. He dropped out of secondary school because his family was too poor to afford continued education. This lack of formal schooling became a point of pride in his later self-mythology—the poor immigrant who built an empire through work and determination rather than credentials.

Despite limited formal education, Paulmann was fluent in German, Spanish, and English, reflecting both his German upbringing and his later international business dealings.

Early business career

Las Brisas restaurant

The Paulmann family's entry into business came in 1952 when they purchased a small restaurant called Las Brisas in Temuco. At seventeen years old, Horst worked alongside his family to run the establishment.

Demonstrating early entrepreneurial instincts, the Paulmanns transformed the restaurant into a supermarket—their initial foray into the retail sector that would define Horst's career.

Supermarket expansion

After the death of his father, Horst and his brother Jürgen continued expanding their supermarket operations in southern Chile. Through the 1950s and 1960s, they built a regional presence in the retail grocery business.

Paulmann traveled to Europe during this period and observed emerging retail concepts, particularly the large-format hypermarket model that was transforming European retail. He recognized an opportunity to bring this format to Chile.

First Jumbo hypermarket (1976)

In 1976, Paulmann opened the first Jumbo hypermarket in Chile, adapting the European large-scale, self-service model to Latin American conditions. The concept was revolutionary for the region: a massive store combining groceries, general merchandise, and household goods under one roof with ample parking.

The Jumbo format required significant investment in real estate, supply chain logistics, and consumer education, but Paulmann's bet on Chilean consumers' appetite for one-stop shopping proved correct.

Founding Cencosud

Corporate establishment (1978)

On November 10, 1978, Horst Paulmann formally established Cencosud S.A., assuming the roles of CEO and Chairman. The company name—an abbreviation of "Centros Comerciales Sudamericanos" (South American Shopping Centers)—reflected Paulmann's continental ambitions from the outset.

Cencosud was not merely a supermarket company; it was conceived as a platform for retail expansion across South America.

Expansion strategy

Under Paulmann's leadership, Cencosud pursued growth through both organic expansion and strategic acquisitions. The company developed expertise in entering markets during economic crises, when distressed assets could be acquired cheaply and competitors were weakened.

International expansion

Argentina (1982)

Paulmann's first major international expansion came in 1982, when he entered Argentina during an economic crisis. The timing was characteristic: while others retreated, Paulmann advanced.

In 1988, Cencosud opened its first shopping center in Argentina, establishing a foothold that would grow into a major market for the company. During 1993–1994, the company opened Lomas Center and San Martín Factory in the Buenos Aires metropolitan area. Between 1996 and 1997, Cencosud invested more than $200 million to construct four additional commercial centers in Buenos Aires province.

Peru (2007)

Cencosud expanded into Peru in 2007 through the acquisition of Grupo Wong's supermarket and shopping center operations for approximately $500 million in a combination of cash and stock. The acquisition gave Cencosud immediate scale in the Peruvian market through established brands.

Brazil (2007)

The same year, Cencosud entered Brazil—Latin America's largest consumer market—by acquiring GBarbosa, a supermarket chain focused on the country's Northeast region. The acquisition established Cencosud as the leading retailer in northeastern Brazil.

In 2011, the company acquired Prezunic, a supermarket chain serving urban markets in Rio de Janeiro, complementing the GBarbosa acquisition and expanding Cencosud's Brazilian footprint.

Colombia

Cencosud extended its reach to Colombia, further cementing its position as a pan-Latin American retail giant.

Costanera Center

Paulmann's signature project was the Costanera Center complex in Santiago, Chile—an ambitious mixed-use development that would become a symbol of both his vision and Chile's economic transformation.

The tallest building in South America

The Costanera Center includes Gran Torre Santiago, which at 300 meters became the tallest building in South America upon completion. The complex also encompasses a six-level shopping mall—the largest in Latin America with over 170,000 square meters of retail space—along with a hotel and multiple office towers.

Construction was interrupted by the 2008 global financial crisis but resumed in late 2009. The shopping mall opened in June 2012.

The project represented Paulmann's bet on Chile's continued economic development and Santiago's emergence as a regional business center. Critics viewed it as excessive; supporters saw it as visionary.

Public markets

Santiago Stock Exchange (2004)

Cencosud completed its initial public offering on the Santiago Stock Exchange in May 2004, under the ticker symbol CENCOSUD. The IPO provided capital for continued expansion while maintaining the Paulmann family's controlling stake.

New York Stock Exchange (2011)

In June 2012, Cencosud listed American Depositary Receipts (ADRs) on the New York Stock Exchange, giving international investors access to the company's shares and raising Cencosud's profile in global financial markets.

However, the company voluntarily delisted from the NYSE in June 2017, concentrating its trading on the Santiago exchange.

Personal life

First marriage and children

Horst Paulmann was married to Helga Koepfer, with whom he had three children: Manfred, Peter, and Heike. All three children became involved in Cencosud's operations and governance, representing the family's controlling stake on the company's board of directors.

Following Helga's death, Paulmann entered a relationship with Katherine Bischof Sepúlveda.

Second family

In 2018, when Paulmann was 83 years old, he and Katherine Bischof welcomed a son, Hans Dieter Paulmann Bischof.

Personal characteristics

Paulmann was known for personally visiting his stores to ensure they met his standards, even into his later years. He cultivated an image as a hands-on operator who understood every aspect of the retail business.

His vision for hypermarkets in Chile was inspired by retail trends he observed during travels to Europe. He combined European retail concepts with local adaptations suited to Latin American consumer preferences and supply chains.

Leadership transition

In July 2021, following a medical leave, Paulmann stepped back from active management of Cencosud. His daughter Heike Paulmann Koepfer was named CEO, marking a generational transition while keeping the company under family leadership.

Corporate restructuring

In 2023, the Paulmann family restructured Cencosud's ownership, domiciling the company in London under a new holding company called PK One Limited, operating under the laws of England and Wales. The Paulmann Koepfer family—Peter, Heike, and Manfred—transferred financial management of their largest corporate asset to the United Kingdom.

The restructuring attracted criticism from those who viewed it as a wealthy family moving assets offshore to reduce Chilean tax exposure.

Controversies

Nazi family background

Paulmann's father Werner Paulmann was an SS-Obersturmbannführer who fled Germany to escape denazification and potential prosecution after World War II. This history was publicly revealed by the Chilean online newspaper El Mostrador in 2012.

Horst Paulmann never publicly addressed or commented on his father's Nazi past. A commemorative publication for his honorary Chilean citizenship in 2006 claimed that Werner Paulmann was merely a "simple Wehrmacht member and lawyer" who fled via Italy with Red Cross assistance—a characterization at odds with his documented SS rank.

Colonia Dignidad connections

Paulmann was criticized for alleged business connections to Colonia Dignidad, the notorious German cult settlement in southern Chile that served as a torture and detention center during the Pinochet dictatorship.

According to lawyer Winfried Hempel, who represented former colonists, Paulmann was a "frequent visitor to the colony." Goods manufactured at Colonia Dignidad were sold in Cencosud stores and advertised through promotional videos filmed at the settlement.

Particularly damning were allegations that Colonia Dignidad was a bread supplier to Las Brisas, the supermarket Paulmann acquired before founding Cencosud. Hempel claimed that Paulmann knew the bread was produced through forced labor and that Paulmann was seen multiple times with Gerhard Mücke, one of cult leader Paul Schäfer's accomplices in systematic sexual torture at the colony.

Paulmann never publicly responded to these allegations.

Support for Pinochet

Paulmann was reported to have been an admirer of Chilean dictator Augusto Pinochet, whose military government ruled Chile from 1973 to 1990. The Pinochet era's free-market economic policies created conditions favorable to entrepreneurs like Paulmann, though the regime was also responsible for widespread human rights violations.

Labor practices

Cencosud has faced criticism for its labor practices. The company reportedly paid employees only minimum wage for decades and was known for surveillance of workers and strict enforcement of workplace rules, including for minor infractions such as petty theft or unauthorized use of company property.

The company gained a reputation for approving arrests of employees suspected of misconduct and for implementing mass layoffs during economic downturns.

Tax evasion allegations

Cencosud's offices in Argentina were raided following allegations of tax evasion. The company was accused of selling food in Chile that had been collected in Argentina for earthquake relief victims in 2010 under a humanitarian aid regime that exempted cargo from taxes—essentially profiting from goods intended for disaster relief.

Canceled speaking engagement

In February 2012, an event organized by the Kassel Lions Club at which Paulmann was scheduled to speak as a guest of honor was canceled at short notice due to numerous protests against his appearance. The cancellation reflected continuing controversy over his family's Nazi background and alleged connections to Colonia Dignidad.

Death

Horst Paulmann died on March 11, 2025, in Santiago, Chile, at the age of 89. His passing marked the end of an era for Latin American retail and triggered tributes from business leaders across the region—alongside renewed scrutiny of the controversial aspects of his legacy.

Legacy

Paulmann's business achievements are substantial: he built one of Latin America's largest retail companies from a small family restaurant, creating tens of thousands of jobs and transforming retail across multiple countries.

His Costanera Center stands as a physical monument to his ambitions, while the Jumbo and Easy brands he developed remain dominant forces in Chilean and Argentine retail.

However, his legacy is complicated by the unaddressed questions surrounding his family's Nazi past, alleged connections to Colonia Dignidad, and labor practices at his companies. For some, Paulmann represents immigrant entrepreneurial success; for others, he represents the uncomfortable accommodations that Chilean society made with figures connected to both Nazism and the Pinochet dictatorship.

External links

• Cencosud official website
• Harvard Business School interview