California, September 13, 2025
News Summary
Bed Bath & Beyond has announced it will not reopen stores in California due to the state’s high operational costs and stringent regulations. Executive Chairman Marcus Lemonis called California too risky for business, highlighting the challenges posed by steep taxes and fees. This decision comes in the wake of a broader trend where companies are relocating from California in search of better business conditions. The exodus is impacting the state’s economy, as firms like Chevron and Tesla have already moved operations elsewhere.
California, August 20, 2023 – Bed Bath & Beyond has officially announced that its planned return to physical retail locations will exclude California, citing the state’s burdensome regulations and high operational costs as significant factors. Executive Chairman Marcus Lemonis described California as too risky for business, emphasizing that steep taxes, fees, and wages have made it increasingly challenging for companies to thrive in the state.
After filing for bankruptcy in 2023, Bed Bath & Beyond has rebranded as Bed Bath & Beyond Home and recently inaugurated a new store in Tennessee. The retail chain has ambitious plans for around 80 additional openings across the United States next year, but California will not be among those new locations.
The announcement follows a broader trend of corporate relocations away from California. Companies are fleeing the state in search of more conducive business environments. Realtor.com made news in February by moving its headquarters from California to Texas, also citing high costs and regulations as key reasons behind its decision. They are not alone; a report from the Public Policy Institute of California highlights that factors influencing relocation decisions include business costs, taxes, regulations, and hiring expenses.
From 2011 to 2021, a significant 789 companies moved their headquarters out of California, and the acceleration of these departures has been notably pronounced since 2017. The statistics show that the number of firms establishing branches in California has plummeted from 137 in 2011 to just 68 in 2021, further indicating a shift in business dynamics.
Prominent industry leaders echo concerns about California’s business landscape. Don Peebles, CEO of The Peebles Corporation, pointed out that many businesses are leaving due to declining quality of life, alongside soaring living costs. Census Bureau data reinforces this assertion, revealing that approximately 690,127 residents exited California in 2023, following a staggering outflow of 817,669 in 2022.
Texas has emerged as a favored destination for transplants from California, with 93,970 individuals making the move in 2023. Arizona and Florida also attracted significant numbers, with 54,222 and 39,052 relocations, respectively. High taxes coupled with a steep cost of living are frequently cited as driving factors for the migration, given that neither Texas nor Florida implement a state income tax.
The median home price in California has reached approximately $859,700, nearly double the national median of $440,892, contributing to the financial strain on residents. According to a Bankrate study, a household in California would require an annual income of about $213,447 to afford the typical home. Companies like Chevron, Tesla, McKesson, and Charles Schwab have shifted their operations to benefit from reduced taxes and regulations.
For example, Chevron moved its headquarters to Houston in early 2024, citing California’s restrictive policies as a hindrance. Similarly, Tesla’s relocation to Austin in 2021 stemmed from the inability to scale operations effectively in the Bay Area due to high housing costs. In 2021, more than 200 corporate relocations were announced, many prompted by unfavorable business conditions in California.
This migration trend also affects smaller businesses grappling with California’s financial burdens. Local incentives in states like Texas and Florida have played a pivotal role in attracting these relocating companies, suggesting a shift in economic priorities among businesses seeking to adapt to evolving workforce trends.
Although California continues to boast a significant economy valued at approximately $4 trillion, the ongoing influx of businesses and residents away from the state could potentially influence its tax base and funding for public services.
FAQ Section
Why did Bed Bath & Beyond decide not to open any stores in California?
Bed Bath & Beyond cited California’s high taxes, steep operational costs, and extensive regulations as reasons to bypass the state in favor of other locations.
What is the trend of companies relocating away from California?
Many companies have relocated their headquarters from California to states like Texas and Florida, driven by the desire to escape high taxes and regulations, as well as to improve their quality of life and operational costs.
How many residents left California recently?
According to Census Bureau data, approximately 690,127 residents left California in 2023, following an even larger exodus of 817,669 in 2022.
What is the median home price in California?
The median home price in California is currently around $859,700, which is almost double the national median of $440,892.
What businesses have relocated from California recently?
Notable companies like Chevron, Tesla, and Realtor.com have recently moved their headquarters to states with more favorable business conditions, such as Texas.
Key Features of the Relocation Trend
| Feature | Details |
|---|---|
| Companies Departing California | 789 firms relocated between 2011 and 2021. |
| Popular Destinations | Texas (93,970 residents), Arizona (54,222), Florida (39,052) in 2023. |
| Median Home Price | California: $859,700; National: $440,892. |
| Income Requirement | Annual income of $213,447 needed for a typical California home. |
| Corporate Moves | Increased relocations reported, with over 200 announcements in 2021. |
Deeper Dive: News & Info About This Topic
- Moneywise: Growing Exodus from California
- Wikipedia: Corporate Exodus
- Tech Times: Companies Leaving California
- Google Search: California businesses relocation
- The Center Square: Texas Corporate Relocations
- Google Scholar: California business exodus
- CoStar: Playboy Joins California’s Corporate Exodus
- Encyclopedia Britannica: California business environment
- Rolling Out: Successful Businesses Leaving California
- Google News: California businesses leaving
Author: Anaheim Staff Writer
Anaheim Staff Writer The Anaheim Staff Writer represents the experienced team at HEREAnaheim.com, your go-to source for actionable local news and information in Anaheim, Orange 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 major conventions at the Anaheim Convention Center, including NAMM and VidCon, exciting games at Angel Stadium and Honda Center, and developments at Disneyland Resort Our coverage extends to key organizations like the Anaheim Chamber of Commerce and Visit Anaheim, plus leading businesses in hospitality, entertainment, and innovation that power the local economy As part of the broader HERE network, including HERECostaMesa.com, HEREHuntingtonBeach.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
