California, September 13, 2025
News Summary
Bed Bath & Beyond has announced it will not return to California for its brick-and-mortar retail operations due to the state’s high costs and stringent regulations. Executive Chairman Marcus Lemonis highlighted the challenges businesses face in California, leading to a trend where numerous companies are relocating to more favorable environments like Texas. This decision follows the company’s bankruptcy in 2023 and rebranding efforts, with plans to open new stores in states perceived as economically viable.
California is experiencing significant changes in its business landscape as Bed Bath & Beyond announced on August 20 that it will not include the state in its planned return to brick-and-mortar retail operations. This decision comes amidst numerous high-profile corporate departures from California, as companies seek more business-friendly environments elsewhere.
The Executive Chairman of Bed Bath & Beyond, Marcus Lemonis, criticized California’s extensive regulations and high operational costs, asserting that the state has become too risky for businesses. Lemonis highlighted the burdensome taxes, fees, wages, and regulations that are stifling growth opportunities in California.
After filing for bankruptcy in 2023, Bed Bath & Beyond has rebranded itself as Bed Bath & Beyond Home. The retailer recently opened a new store in Tennessee and has plans to establish around 80 additional locations across the nation next year, showcasing a strategic shift towards states perceived as more economically viable.
Bed Bath & Beyond is not alone in this trend. In February, Realtor.com announced its relocation of headquarters from California to Texas due to the expensive business landscape in California. A revealing report by the Public Policy Institute of California indicated that corporate relocation decisions are heavily influenced by business costs, regulatory climate, taxes, and access to skilled labor.
Between 2011 and 2021, a total of 789 companies moved their headquarters out of California, with a noted increase in departures following 2017. During the same period, the number of firms opening in California dwindled from 137 in 2011 down to just 68 in 2021. Leading business figures have also recognized California’s growing challenges, with some asserting that many corporations are “fleeing” due to a decline in quality of life.
In terms of population migration, data from the Census Bureau revealed that approximately 690,127 residents left California in 2023, following an outflow of 817,669 in the previous year. Texas emerged as the prime destination for former Californians, attracting around 93,970 individuals in 2023, accompanied by Arizona (54,222) and Florida (39,052).
High taxation and exorbitant living costs are frequently cited as motivators for this exodus, particularly since neither Texas nor Florida implements a state income tax. The stark difference in property costs further emphasizes this issue, with the current median home price in California now at $859,700, nearly double the national average of $440,892. Estimates suggest that for a household to afford a typical home in California, they would need an annual income of $213,447.
Leading companies such as Chemron and Tesla have made the move out of California to find better tax incentives and less regulation. Chevron announced their relocation to Houston in 2024 while citing increasing costs and burdens imposed by state policies. Tesla shifted its headquarters to Austin in 2021, as its CEO noted significant limitations imposed by the high cost of living in the Bay Area.
The trend of corporate relocations includes many smaller businesses grappling with California’s financial burdens, with local incentives in other states attracting firms looking to compensate for reduced costs. However, despite ongoing departures, California’s economy remains robust, contributing approximately $4 trillion to the national GDP, thus maintaining its appeal to certain businesses that can adapt to the local challenges.
This evolving economic climate illustrates broader shifts in the business landscape, revealing that companies are constantly reassessing their operational strategies in response to changing state conditions.
FAQ Section
Why is Bed Bath & Beyond not returning to California for its retail operations?
Bed Bath & Beyond has decided to exclude California from its brick-and-mortar return due to the state’s heavy regulations and high costs, which have been deemed too risky for business.
What are some factors influencing companies to leave California?
Factors include high taxes, steep living costs, extensive regulations, and the pursuit of more business-friendly environments in states like Texas and Florida.
How many companies relocated out of California between 2011 and 2021?
A total of 789 companies moved their headquarters out of California during this period.
What are the implications of these corporate relocations for California’s economy?
The corporate departures could have significant impacts on California’s tax base and funding for public services, while also altering the local business landscape.
Key Features Overview
| Feature | Details |
|---|---|
| Company Announcement | Bed Bath & Beyond excludes California from its retail return plans. |
| Reasons for Exclusion | Heavy regulations, high costs, risk for businesses. |
| State Culinary Landscape | High taxes and costs leading to business migrations. |
| Population Migration | 690,127 residents left California in 2023. |
| Corporate Relocations | 789 companies relocated out of California between 2011 and 2021. |
| Economic Impact | Potential for reduced tax base and public service funding. |
Deeper Dive: News & Info About This Topic
- Moneywise: Growing Exodus from California
- Tech Times: Companies Leaving California
- The Center Square: Business Exodus to Texas
- Encyclopedia Britannica: California Business Climate
- Costar: Playboy’s Move from 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.
