California, August 21, 2025
News Summary
Bed Bath & Beyond’s Executive Chairman Marcus Lemonis announced that the company will not open new retail stores in California due to high operational costs and regulations. Instead, they will focus on online sales through their website, ensuring quick delivery for customers. This decision aligns with their recovery strategy following bankruptcy in 2023, which included plans to open 300 new stores nationwide. Lemonis emphasized financial challenges over political motivations, while California officials expressed surprise at the company’s shift in focus.
California
On Wednesday, Marcus Lemonis, the Executive Chairman of Bed Bath & Beyond, announced the company’s decision to avoid opening new retail stores in California, citing the state’s high operational costs and extensive regulations. This strategic move is part of the company’s ongoing recovery process following its bankruptcy in 2023, which stemmed from substantial debt and failed turnaround efforts.
Lemonis highlighted that the decision is rooted in economic factors rather than political motivations. The executive emphasized the challenges facing businesses in California, including high taxes, fees, and wages, which make it financially untenable for companies like Bed Bath & Beyond to maintain operations in the state. They have instead opted to focus on serving California customers through their online platform at BedBathandBeyond.com, promising deliveries within 24 to 48 hours, with some orders eligible for same-day service.
The announcement marks a significant shift for Bed Bath & Beyond, which plans to open 300 new stores throughout the nation in the next two years, following a revamped business strategy under the new ownership structure established by Beyond, Inc.. This ownership entity includes recognized retail brands like Overstock and buybuy BABY.
Challenges in California
Lemonis described California’s business environment as one of the most overregulated and expensive in the country. His comments indicate that the state’s policies create challenges that hinder the ability of companies to hire employees, maintain store operations, and ultimately provide value to their customers. Despite facing criticism regarding wages, Lemonis has defended the company’s pay structure, asserting that they aim to offer competitive wages to employees while still delivering quality products and generating profits for both shareholders and customers.
Company’s Future Plans
The decision to discontinue physical store operations in California aligns with Bed Bath & Beyond’s broader strategy for growth and recovery. Recently, the company opened its first new outlet, dubbed Bed Bath & Beyond Home, in a location near Nashville on August 8, marking a comeback effort to revive its physical presence in the retail market.
The news of Bed Bath & Beyond’s withdrawal from California has generated responses from state officials. Governor Gavin Newsom’s office expressed surprise at the company’s renewed focus on physical stores outside of California and conveyed hopes for the company’s future success and relevance in the retail landscape.
Conclusion
As Bed Bath & Beyond continues its recovery from bankruptcy, the company’s recent policy to not open stores in California reflects the challenges that retailers face in the state. With a strategy focused on online sales and national expansion through new store openings, Bed Bath & Beyond is positioning itself to navigate the complexities of the current retail environment while staying committed to its goals of profitability and customer satisfaction.
Frequently Asked Questions
1. Why is Bed Bath & Beyond avoiding California for new store openings?
The company cites high operational costs, including taxes, fees, and wages, as the primary reasons for not opening retail stores in California.
2. How will Bed Bath & Beyond serve California customers?
California customers will be served through BedBathandBeyond.com, with online orders promised to be delivered within 24 to 48 hours, and some orders even available for same-day service.
3. What is Bed Bath & Beyond’s plan for the future?
The company plans to open 300 new stores across the nation in the next two years as part of its recovery strategy post-bankruptcy.
4. Where did Bed Bath & Beyond open its first new store recently?
The first new store opened near Nashville on August 8 and is branded as Bed Bath & Beyond Home.
5. How did California officials react to this decision?
California Governor Gavin Newsom’s office expressed surprise at Bed Bath & Beyond’s renewed focus on physical stores outside the state and hopes for the company’s relevance in the future.
Deeper Dive: News & Info About This Topic
- Business Wire: Statement from Marcus Lemonis
- Wikipedia: California
- USA Today: Governor Newsom’s Response
- Google Search: Bed Bath and Beyond
- KRON4: Bed Bath & Beyond Bashes California
- Encyclopedia Britannica: California
- CBS News: Bed Bath & Beyond in California
- Google News: California Business Environment
- National Review: California Regulations Impacting Businesses
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.
