As DTC breaks, retail wins – and Sandbox Studios is first to market
For much of the past decade, consumer investing had one mantra: win online.
Direct-to-consumer brands promised exponential growth fueled by Facebook ads, precise targeting, and limitless digital shelf space. Investors lined up to back digital-first plays — and for a time, it worked.
But the economics have changed. Customer acquisition costs have more than doubled in four years, rising from $28 in 2020 to $60–$70 by 2024. Privacy changes have gutted targeting efficiency. And consumers, inundated with ads, are buying less from endless Instagram pitches and more from brands they trust – which increasingly means brands they see in-store.
This shift is creating a retail resurgence.
Target, Ulta, Walmart, and Sephora are reporting traffic growth and betting big on cultural cachet to pull shoppers through their doors. And here’s the unlock: celebrity-backed brands aren’t just part of this story – they’re leading it. They command 8× more shelf space than traditional startups, because they bring both consumer trust and retailer excitement.
At Sandbox Studios, we’ve seen this play out across our portfolio. While many consumer investors are still chasing the last generation of DTC plays, we are leaning into the future: brands where culture and celebrity are the growth engine.
Safely: Everyday Essentials, Everywhere Consumers Shop
Safely proves how an everyday category like cleaning can be transformed by cultural reach and omnichannel distribution. In Target’s 2024 holiday campaign, Safely generated 3.5 billion impressions and sold 115,000 units in just three weeks — with $0 marketing spend.
That amplification comes not just from placement but from Kris Jenner herself, whose 52M+ Instagram following turns every shelf into a headline.
Jelina Saliu, CEO of Safely says:
“Cleaning products are part of everyday life, so our success depends on being where consumers already shop. With Kris Jenner’s reach amplifying awareness, Safely has to be just as easy to add to a Target basket as it is to order online. When you combine everyday relevance with cultural equity at that scale, you create a brand that’s both trusted and accessible nationwide.”
Sarelly Sarelly: From Online Mastery to Retail Credibility
Founded by Mexico’s biggest beauty influencer, Anna Sarelly, Sarelly Sarelly has built one of the most engaged online beauty communities in Latin America — 3M+ followers across Instagram and YouTube. But even digital powerhouses eventually hit the ceiling of DTC-only growth.
This year, Sarelly Sarelly launched into Ulta nationwide and opened its first flagship store in Mexico City. For beauty consumers, that shelf placement matters as much as online buzz.
Remi Martini, CEO of Sarelly Sarelly tells us:
“We’ve built one of the most engaged beauty communities in Latin America thanks to Anna Sarelly’s following. But community alone doesn’t create longevity — being on shelves at Ulta shows consumers that Sarelly Sarelly belongs in the top tier of beauty. Retail is the moment where credibility meets scale, and that’s what unlocks long-term growth.”
Dr. Bombay: Culture Scales in the Freezer Aisle
Dr. Bombay, co-founded with Snoop Dogg, shows how cultural equity translates into hard retail numbers. With Snoop’s 100M+ followers across Instagram, Facebook, and TikTok, Dr. Bombay launched seven SKUs across 3,500 Walmart stores nationwide. When pricing was aligned to match Ben & Jerry’s, unit sales jumped ~50% month over month.
The brand has since been approved for a 7-Eleven national rollout into 8,000 doors, and through Walmart, Gopuff, and delivery apps, it now covers 98% of the U.S. within an hour.
Sam Rockwell, Co-Founder of Dr. Bombay says:
“Dr. Bombay was born out of culture, and Snoop’s reach gives us visibility no other frozen dessert brand can match. But the way it becomes a lasting business is through retail: Walmart gave us the platform to scale nationally, and the data proves consumers aren’t just trying the brand — they’re coming back. Cultural resonance plus retail access is what creates true staying power.”
Why This Matters for Investors
For investors, this is more than a channel shift — it’s a change in the fundamental math of consumer investing.
- Retail delivers scale and efficiency that digital-first brands can no longer achieve as CAC climbs.
- Shelf space is defensible. Once you have 8 feet in Target or an endcap at Walmart, it’s far harder for competitors to dislodge you than to outbid you online.
- Celebrity equity creates an unfair advantage. With audiences in the tens of millions, Kris, Anna, and Snoop are built-in marketing engines that reduce spend and accelerate velocity.
- Exit value increases with retail traction. Strategics want retail-ready brands that plug directly into existing distribution.
The last cycle rewarded digital-first brands that hacked growth through ads. The next cycle will reward retail-first brands that convert cultural heat into durable distribution.
Sandbox Studios is not just participating in this shift — we’re leading it.
Final Word
The shelf is back.
Retailers want traffic, consumers want trust, and celebrity-backed brands are uniquely positioned to deliver both.
At Sandbox Studios, we’re building the portfolio that sits at the intersection of culture and commerce — where the next category leaders will be born, scaled, and exited.
