Sydney luxury retailer Cosette has announced it will cease operations after 11 years, closing its warehouse and ending a journey that saw the business clear serious allegations but ultimately succumb to changed market conditions.
The online luxury multi-brand retailer, which served over 140,000 customers since 2014, confirmed the decision this week in a statement posted on its website. The closure comes despite being vindicated by NSW Fair Trading in 2024 following a year-long investigation into authenticity claims.
From Vindication to Closure
Executive Director Don Grover confirmed the news on LinkedIn, describing it as a difficult but necessary decision. “Unfortunately, the market has changed and we can no longer continue as we had,” he said.
The announcement marks the end for a retailer that positioned itself as making “luxury more affordable, every day” by sourcing designer goods directly from European suppliers at discounted prices.
Cosette stocked premium brands including Gucci, Prada, Saint Laurent, Celine and Balenciaga. The business operated primarily online with a former physical presence in The Rocks, Sydney.
Cosette operated for over 11 years, serving 140,000 customers with discounted luxury goods from European suppliers.
The Investigation That Changed Everything
The closure follows a turbulent period that began nearly two years ago when the retailer faced over 1,000 customer complaints alleging it sold fake luxury goods. NSW Fair Trading launched a comprehensive investigation, assessing 1,079 complaints and working directly with luxury brands including Prada, Burberry and the Kering Group.
The investigation concluded in October 2024 with no adverse findings. Fair Trading confirmed every tested item was authentic. The probe revealed a different problem: significant issues with the accuracy of third-party online authenticators who use AI algorithms.
“In some instances, the luxury brand confirmed the authenticity of handbags that multiple online authenticators had advised customers were fake,” a NSW Fair Trading spokesperson said at the time.
Despite full vindication, the damage proved irreversible. Grover acknowledged the allegations had a “detrimental impact” on the business. During the investigation, Cosette downsized by 60 percent, closed its physical store, and staff took voluntary pay cuts rather than face redundancy.
Final Warehouse Sale Launched
As part of the wind-down, Cosette is running an Australian Warehouse Sale offering up to 80 percent off recommended retail prices on luxury labels. The sale includes remaining inventory from brands like Saint Laurent, Gucci, Prada and Celine.
Grover emphasised that Cosette is not in administration or liquidation, with ASIC records confirming the business remains solvent. The closure represents a strategic decision rather than financial collapse.
Luxury Retail’s Changing Landscape
Cosette’s exit reflects broader challenges facing Australia’s luxury retail sector. The industry has experienced significant upheaval as consumer preferences shift, online competition intensifies, and economic uncertainty impacts discretionary spending.
Australia’s luxury goods market was valued at AUD 11.47 billion in 2025 and is projected to reach AUD 16.34 billion by 2035, according to market analysis. However, this growth masks the struggles of individual retailers navigating rising import costs, changing consumer expectations, and pressure from fast-fashion competitors.
Australia’s luxury goods market forecast
The closure adds to a growing list of Australian retail casualties. Ally Fashion collapsed earlier this year, affecting 185 stores and over 1,000 employees. Jeanswest shut 90 stores in March 2025, cutting 600 jobs.
The Authenticator Problem Exposed
One lasting impact of the Cosette investigation is highlighting the unreliability of online authentication services. The NSW Civil and Administrative Tribunal found that third-party authenticators provided “no evidence of specific qualifications, skills or knowledge” and were not recognised by luxury brands.
Grover called for better regulation of authenticators. “Who else can actually say that everything they sell is legitimate? We’re in a unique position now where our model has been validated by NSW Fair Trading,” he said last year.
The investigation revealed luxury brands confirmed items as authentic that multiple online authenticators had labelled as fake, raising serious questions about AI-driven authentication technology.
Cosette closes after 11 years despite NSW Fair Trading clearing fake goods claims. Market shifts force Sydney luxury retailer’s exit.Also Read: Capstone Copper Ends Strike at Chile’s Mantoverde Mine with Three-Year Agreement
What This Means for Consumers
With Cosette’s closure, Australian consumers lose access to one of the few retailers offering genuine luxury goods at significant discounts through parallel importing. The business model sourced overstock directly from European retailers and licensees, primarily in Italy.
Grover noted this shift means “fewer options for Australian consumers” seeking affordable luxury. “We have never wavered from our mission of making luxury more affordable, every day,” he said.
The company thanked its loyal customers who supported the business through challenging times. “We are deeply grateful for the trust and loyalty you have shown us throughout this journey,” the statement read.
As the luxury retail landscape continues evolving, Cosette’s closure serves as a reminder that even vindication in court cannot always overcome reputational damage and shifting market dynamics.
