After more than 11 years in business, Cosette, the iconic Sydney-based luxury retailer, is officially closing its doors. Known for offering discounted designer goods, Cosette built a loyal following, but in a rapidly changing retail landscape, the business has been forced to adapt to new realities. So, what went wrong, and what’s next for luxury retail in Australia?
Cosette’s Rise and Fall
Cosette began as a luxury haven for savvy shoppers, offering designer handbags, apparel, and accessories at prices far lower than those in traditional high-end stores. The Sydney CBD location, nestled in The Rocks, became synonymous with affordable luxury. For over a decade, Cosette prided itself on its mission to provide Australians with access to the best luxury products without the hefty price tag.
Despite these successes, the company announced it would shut down operations, saying that the market had changed. In a statement on Instagram, Cosette explained, “For more than 11 years, Cosette has been proud to offer our customers access to some of the most sought-after pieces at significant savings,” reports 9News.
Interestingly, Cosette had a brush with controversy in 2024, when allegations surfaced that it was selling fake designer handbags. A NSW Fair Trading investigation found no evidence to support these claims, and the business was cleared, but the controversy still lingered, affecting the brand’s reputation. While the store was proven to sell only authentic products, the damage to its image may have contributed to its eventual closure.
Changing Times and Economic Pressures
It’s not just about the handbag allegations, though. The broader retail environment has shifted, particularly for luxury goods. As online shopping continues to grow in popularity, many brick-and-mortar retailers have struggled to keep up. Cosette wasn’t immune to these pressures, facing rising rents in Sydney’s central business districts and increasingly competitive online markets.
The impact of COVID-19 further accelerated changes in the retail sector. With people less willing to go out to physical stores, even for luxury items, the demand for in-store shopping began to decline. For Cosette, keeping a physical store open in The Rocks, a pricey location in the heart of Sydney, became more challenging. Although its products were seen as more affordable than traditional luxury brands, the cost of operating a physical store in such a high-rent area ultimately became too much.
A Shift in the Retail Landscape
Cosette’s closure highlights the broader struggles facing luxury retailers in Australia. Many consumers are increasingly turning to online shopping, even for high-end products. In this digital age, retailers must adapt quickly to shifting consumer habits. For Cosette, its attempt to combine affordability with luxury was ultimately not enough to sustain it against the tides of change.
There are many questions about what comes next for luxury retail in Australia. Will we continue to see smaller, independent businesses closing their doors, unable to compete with global giants? Or will we see a resurgence in demand for physical stores as we move beyond the pandemic and into a post-COVID world? Only time will tell.
A Look Forward: Can Australian Luxury Retail Survive?
With Cosette now a part of Australian retail history, it’s clear that the luxury market will have to change its approach. The ability to balance online offerings with an in-store experience is crucial, and smaller retailers will need to leverage their unique selling points—be it affordable pricing, exclusive products, or personalized services—to survive.
For now, Cosette’s loyal customer base can look back on a business that tried to make luxury goods accessible, but ultimately couldn’t keep up with the pressures of a changing retail environment. As retail continues to evolve, Australian businesses must adapt quickly to remain relevant.
