California, August 21, 2025
News Summary
Bed Bath & Beyond has announced it will not open or operate any retail stores in California due to high operational costs and regulatory challenges. The company will focus on its online platform instead, delivering orders swiftly to California customers. This strategic shift comes as the company aims to recover from bankruptcy and plans to open 300 new stores across the U.S. in the coming years. Despite criticism regarding employee compensation, the company asserts that its business model is influenced by the challenging California business environment.
California – Bed Bath & Beyond will no longer open or operate any retail stores in the state due to high operational costs and regulatory challenges, according to Marcus Lemonis, Executive Chairman of the company. This decision, announced on Wednesday, is based purely on economic realities rather than political considerations.
Lemonis specified that the company’s inability to sustain operations in California stems from the high taxes, fees, and wages associated with running a business in the state. He characterized California as having “one of the most overregulated, expensive, and risky environments for businesses in America,” which complicates hiring, maintaining store operations, and providing customer value.
Instead of continuing with brick-and-mortar locations, Bed Bath & Beyond plans to focus its efforts on serving California customers through its online platform, BedBathandBeyond.com. Customers will be able to receive their online orders within 24 to 48 hours, with some cases offering same-day shipping services.
This strategic shift occurs as Bed Bath & Beyond seeks to recover from bankruptcy, which it experienced in 2023 due to severe debt burdens and unsuccessful turnaround attempts. Over the next two years, the company plans to open 300 new stores across the United States.
Despite facing criticism for allegedly not wanting to pay employees fairly, Lemonis defended the company’s pay structure, emphasizing their aim to offer competitive wages. He maintained that the objective is to deliver high-quality products while ensuring profitability for both shareholders and customers, arguing that California’s business climate makes these objectives difficult to achieve.
The company’s decision to pull back from California aligns with its recent ownership transition to Beyond, Inc., which includes brands such as Overstock and buybuy BABY. Bed Bath & Beyond recently opened its first new store, named Bed Bath & Beyond Home, near Nashville on August 8, marking the start of its store revival strategy.
The response from California Governor Gavin Newsom’s office indicated surprise at Bed Bath & Beyond’s decision and expressed hope for the company’s future relevance and success as it navigates its new operational strategy.
Background Context
Bed Bath & Beyond’s shift in strategy is significant, especially considering its past struggles. After a steady decline in sales and market share, the company filed for bankruptcy in 2023, prompting a comprehensive reassessment of its business model. The new strategy revolves around online sales and selective physical store openings, reflecting broader trends in retail where digital shopping continues to thrive.
FAQ
Why will Bed Bath & Beyond not open stores in California?
Bed Bath & Beyond has decided not to open stores in California due to high taxes, fees, and wages, which make it economically unfeasible to operate in the state.
How will Bed Bath & Beyond serve California customers?
California customers will be served through Bed Bath & Beyond’s online platform, where products can be delivered within 24 to 48 hours, with some options for same-day delivery.
What is the company’s future plan?
Over the next two years, Bed Bath & Beyond plans to open 300 new stores across the nation as part of its strategy to recover from bankruptcy.
Key Features Overview
| Feature | Description |
|---|---|
| No New Stores in California | Due to high operational costs and regulations. |
| Online Sales Focus | Serving California customers through BedBathandBeyond.com with quick delivery. |
| Recovery from Bankruptcy | Seeking to stabilize finances and enhance profitability. |
| New Store Openings | Plans to open 300 new stores across other states. |
Deeper Dive: News & Info About This Topic
- Business Wire: Statement from Marcus Lemonis
- USA Today: California Governor Newsom on Bed Bath & Beyond
- Kron4: Bed Bath & Beyond Bashes California
- Wikipedia: Bed Bath & Beyond
- Google Search: Bed Bath and Beyond
Author: STAFF HERE BEVERLY HILLS WRITER
The Beverly Hills Staff Writer represents the experienced team at HEREBeverlyHills.com, your go-to source for actionable local news and information in Beverly Hills, 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 Rodeo Drive Concours d'Elegance, the Beverly Hills artSHOW, Concerts on Canon, and holiday celebrations throughout the city. Our coverage extends to key organizations like the Beverly Hills Chamber of Commerce and Visit Beverly Hills, plus leading businesses in luxury fashion, hospitality, and entertainment that drive the local economy. As part of the broader HERE network, including HERELosAngeles.com, HERESantaAna.com, HEREHuntingtonBeach.com, and HERECostaMesa.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
