California, August 21, 2025
News Summary
Bed Bath & Beyond has announced it will not open new stores in California due to high costs and regulations. Instead, the company will serve customers online, delivering orders within 24 to 48 hours. This decision follows the company’s recent bankruptcy and aims to strengthen its brand while planning to launch 300 new stores elsewhere in the U.S. Critics have raised concerns over wage fairness, but the company cites California’s economic environment as the primary issue.
California—Bed Bath & Beyond has announced that it will not be opening new retail stores in California, citing the state’s high costs and strict regulations as the main reasons for this decision. Marcus Lemonis, the Executive Chairman of the company, highlighted that the choice is not influenced by political factors but is grounded in economic realities.
According to Lemonis, the operational environment in California has become unsustainable for Bed Bath & Beyond. The company faces challenges due to elevated taxes, significant fees, and soaring wages that contribute to operational risks. He characterized California as “one of the most overregulated, expensive, and risky environments for businesses in America,” suggesting that the landscape makes it difficult to employ staff, maintain operations, and provide value to customers.
In lieu of physical stores, Bed Bath & Beyond will serve its Californian clientele exclusively through its online platform, BedBathandBeyond.com. Orders placed online are expected to be delivered within 24 to 48 hours, with some cases offering same-day delivery services. This shift aligns with the company’s strategy to leverage e-commerce as it navigates post-bankruptcy recovery.
This decision comes on the heels of Bed Bath & Beyond’s efforts to recover from financial turmoil, having filed for bankruptcy in 2023 due to crippling debt and ineffective turnaround strategies. While the company aims to revitalize its brand, it will focus on the launch of 300 new shops across other parts of the United States over the next two years.
Some critics of the company’s decision have suggested that it stemmed from a reluctance to pay workers fair wages. However, Lemonis defended the company’s compensation strategy, asserting that they strive to provide competitive wages while aiming for profit for both shareholders and customers. He reiterated that the operational framework in California curtails their ability to achieve these objectives effectively.
Following a recent ownership change to Beyond, Inc., which includes brands like Overstock and buybuy BABY, Bed Bath & Beyond’s strategy continues to evolve. Their first new store, branded as Bed Bath & Beyond Home, open in Nashville on August 8, signaling the commencement of their physical store revival in other regions.
In response to this development, the office of California Governor Gavin Newsom expressed surprise at the company’s announcement but voiced hope concerning Bed Bath & Beyond’s future relevance and operations.
Background Context
Bed Bath & Beyond’s decision to pull out of California reflects broader trends concerning business operations in high-cost environments. Over the years, many companies have cited similar reasons for limiting or restructuring their presence in states with high operational expenses. This has sparked ongoing discussions concerning the balance between regulatory frameworks, taxation, labor costs, and business sustainability in various regions.
FAQ Section
Why is Bed Bath & Beyond not opening stores in California?
Bed Bath & Beyond is avoiding new store openings in California due to high taxes, fees, wages, and an overregulated business environment.
How will Bed Bath & Beyond serve customers in California?
The company will focus on serving California customers through its online platform, providing deliveries within 24 to 48 hours, including some same-day services.
How many new stores does Bed Bath & Beyond plan to open nationwide?
Bed Bath & Beyond plans to open 300 new shops across the United States over the next two years.
What prompted Bed Bath & Beyond to change its business strategy?
The company is recovering from bankruptcy and aims to adapt its business model under new ownership, focusing on e-commerce and a select number of brick-and-mortar locations.
Key Features Overview
| Feature | Details |
|---|---|
| Decision to Avoid California | High taxes, fees, and wages prevent business sustainability. |
| Service Model | Online sales only with delivery in 24-48 hours, including same-day options. |
| New Store Openings | Plans to open 300 new locations across the U.S. in the next two years. |
| Background | Recovering from bankruptcy, focusing on strategic changes under new ownership. |
Deeper Dive: News & Info About This Topic
- Business Wire: Statement from Marcus Lemonis
- Google Search: Bed Bath & Beyond
- Fox Business: Major retailer says no to California
- Encyclopedia Britannica: California
- KTLA: Bed Bath & Beyond in California
- Google News: Business Regulations California
Author: STAFF HERE HOLLYWOOD
The Hollywood Staff Writer represents the experienced team at HEREHollywood.com, your go-to source for actionable local news and information in Hollywood, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Hollywood Bowl summer concerts, the Hollywood Christmas Parade, film premieres at TCL Chinese Theatre, and festivals at the Magic Castle. Our coverage extends to key organizations like the Hollywood Chamber of Commerce and Visit Hollywood, plus leading businesses in entertainment, dining, and tourism that define the local economy. As part of the broader HERE network, including HERELosAngeles.com, HEREBeverlyHills.com, HEREAnaheim.com, and HEREHuntingtonBeach.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
