California, September 13, 2025
News Summary
Bed Bath & Beyond has announced it will not be reopening any physical stores in California, citing high operational costs and a challenging regulatory environment. The company’s Executive Chairman criticized California’s business climate after a bankruptcy filing, resulting in a rebrand to Bed Bath & Beyond Home. This decision aligns with a broader trend of companies relocating from California to states like Texas and Florida, where operational costs are lower. The migration of businesses has been reported, with significant outflows of residents and companies seeking favorable conditions elsewhere.
California is trending toward a significant shift as Bed Bath & Beyond announces it will forgo reopening physical retail stores in the state. This decision, revealed on August 20, comes amidst an ongoing corporate exodus prompted by California’s complex business climate, which is characterized by heavy regulations and high operational costs.
Marcus Lemonis, the Executive Chairman of Bed Bath & Beyond, has criticized California as an unfavorable business landscape, citing steep taxes, hefty fees, and stringent regulations that inhibit business growth. Following a bankruptcy filing earlier this year, the company has rebranded itself as Bed Bath & Beyond Home and has already opened a new store in Tennessee. The retailer has plans to expand further, with approximately 80 new store openings scheduled across the nation in the coming year.
The trend of companies relocating away from California is not isolated. Another notable case is Realtor.com, which moved its headquarters from California to Texas in February in search of more favorable business conditions. Findings from the Public Policy Institute of California reveal that decisions made by businesses to relocate are highly influenced by factors such as operational costs, tax structures, regulations, the availability of skilled labor, and employee hiring expenses.
Between 2011 and 2021, California witnessed the migration of 789 companies that relocated their headquarters. The pace of these exits significantly escalated after 2017 as many organizations sought improved environments for business operations. Additionally, the number of businesses moving into California has decreased sharply, dropping from 137 in 2011 to just 68 by 2021.
The exodus has not only affected large corporations but has also hit numerous smaller businesses grappling with California’s high costs and regulatory hurdles. High taxes and a soaring cost of living are among the most commonly noted reasons for leaving the state, particularly since neither Texas nor Florida impose a state income tax. Recent Census Bureau data indicate that a remarkable 690,127 residents left California in 2023, on the heels of a staggering outflow of 817,669 in the previous year. Texas emerged as the favored destination for those relocating, attracting 93,970 former Californians, followed closely by Arizona and Florida.
Current data from real estate platforms indicate that the median home price in California is approximately $859,700, nearly double the national median of $440,892. According to a Bankrate study, a household in California must have an annual income of $213,447 to afford a typical home. Such financial strains have compelled firms like Chevron, Tesla, McKesson, and Charles Schwab to relocate to states with lower taxes and economic burdens. Chevron’s shift to Houston, announced in 2024, cited California’s policies as a key factor in raising costs for its operations.
Despite these businesses leaving the state, California’s economy remains robust, valued at an impressive $3 trillion ($4 trillion). This resilience highlights the complexity of the situation, whereby the state can still attract businesses adept at navigating the existing challenges. The evolving landscape signifies broader economic shifts and changing workforce dynamics as companies adapt their operational strategies to stay competitive.
FAQ
Why has Bed Bath & Beyond decided to forgo reopening in California?
Bed Bath & Beyond’s decision is attributed to California’s challenging business environment, which includes high taxes, strict regulations, and elevated operational costs.
What is the significance of Bed Bath & Beyond’s rebranding?
Following its bankruptcy filing, Bed Bath & Beyond has rebranded as Bed Bath & Beyond Home to transition into a new retail strategy, focusing on reopening locations in other regions while avoiding California.
What patterns are observed in corporate relocations from California?
Recent years have seen an increase in corporations relocating from California due to high costs and regulations. Reports indicate that 789 companies left the state between 2011 and 2021, a trend that has accelerated since 2017.
What states are attracting former California residents and businesses?
Texas has emerged as the most popular destination for those relocating from California, attracting nearly 94,000 Californians in 2023, with Arizona and Florida also being popular choices due to their lower tax environments.
Key Features of Business Relocation Trends from California:
- Bed Bath & Beyond excludes California from expansion plans due to high costs.
- Executive Chairman criticizes regulation environment and lack of business-friendly incentives.
- Florida and Texas have become prime relocation spots for businesses and residents.
- Significant outflow of residents contributing to a declining state population.
Deeper Dive: News & Info About This Topic
- Vin News: Bed Bath & Beyond Excludes California
- Tech Times: Companies Leaving California
- Moneywise: Exodus from California
- The Center Square: Corporate Relocation to Texas
- CoStar: Playboy Joins California Exodus
- Wikipedia: California
- Google Search: California Corporate Exodus
- Google Scholar: California Business Relocation
- Encyclopedia Britannica: California Economy
- Google News: California Businesses Leaving
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.
