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Bed Bath & Beyond Shifts to Online-Only Model in California

Illustration of digital shopping tools with a California skyline

California, August 24, 2025

News Summary

Bed Bath & Beyond has announced it will not open any stores in California, choosing to focus exclusively on an online model due to the state’s challenging business environment. Executive Chairman Marcus Lemonis criticized California’s regulatory and economic climate as detrimental to retail businesses. Following a bankruptcy filing that resulted in nationwide store closures, the company has rebranded as Beyond, Inc. and plans to deliver products quickly to California customers through its website, BedBathandBeyond.com. This shift highlights a growing trend in retail towards digital-first strategies.

California

Bed Bath & Beyond has officially announced that it will not open any stores in California, shifting its focus entirely to an online-only model for the state. This decision follows the company’s bankruptcy filing in 2023, which resulted in the closure of all its stores nationwide, but the company has recently reopened its first location, Bed Bath & Beyond Home, near Nashville on August 8, 2024.

Marcus Lemonis, the Executive Chairman of Bed Bath & Beyond, criticized the business environment in California, describing it as “one of the most overregulated, expensive, and risky” places in America for businesses. In response to this challenging landscape, the company plans to emphasize online sales with a delivery option ranging from 24 to 48 hours and, in some instances, same-day service through its website, BedBathandBeyond.com.

This decision has ignited reactions from California officials, including a mocking response from Governor Gavin Newsom’s press office, which suggested that Bed Bath & Beyond was no longer relevant in the current market landscape. Lemonis clarified that this choice is purely based on business conditions and not on political motivations. He expressed concerns regarding California’s regulatory policies, such as high taxes, high fees, and stringent labor laws that contribute to the state’s challenging business environment.

Before its bankruptcy, Bed Bath & Beyond operated over 80 stores across California. The company’s decision to forgo physical locations aligns with a growing trend among retailers moving towards digital-first models to adapt to shifting consumer behaviors and the evolving retail landscape. Despite Lemonis’s assertions about California’s difficulties for business, some local officials argue that the state remains a substantial market, housing nearly 39 million potential consumers.

Bed Bath & Beyond’s path to rebranding as Beyond, Inc. followed its acquisition by Overstock.com, which restructured the company to focus more on online retail. The challenges facing Bed Bath & Beyond reflect broader pressures in the retail sector, especially during peak shopping seasons, such as back-to-school, where inflation affects consumer spending behaviors.

Newsom had previously commented on a broader trend of businesses leaving California due to high operating costs and regulatory constraints, pointing to various well-known companies that have relocated to other states. Retail analysts note that Bed Bath & Beyond’s issues are indicative of larger shifts in retail, emphasizing the impact of changing consumer preferences and economic factors.

Summary of Key Information

  • Bed Bath & Beyond will not open any stores in California.
  • The shift to an online-only model focuses on quick delivery options.
  • The company previously filed for bankruptcy, closing all stores, but reopened one in Nashville.
  • Lemonis cites California’s regulatory environment as the reason for the business decision.
  • California officials argue that the state remains a significant market.
  • Bed Bath & Beyond has transitioned to a new online retail model under the name Beyond, Inc.

FAQ Section

Why is Bed Bath & Beyond not opening stores in California?

Bed Bath & Beyond’s decision to not open stores in California is primarily due to the state’s overregulation, high operating costs, and a challenging business environment.

What is the new delivery model for Bed Bath & Beyond?

The company is shifting its focus to online sales with 24- to 48-hour delivery options and, in some cases, same-day service through its website.

How many stores did Bed Bath & Beyond have in California before bankruptcy?

Prior to bankruptcy, Bed Bath & Beyond operated over 80 locations in California.

What significant changes has Bed Bath & Beyond undergone recently?

The company filed for bankruptcy, closed all stores, and has since reopened as Beyond, Inc., focusing solely on an online retail model following its acquisition by Overstock.com.

How has California’s business environment affected retail businesses?

High taxes, stringent labor laws, and increased fees have contributed to a challenging business climate, leading some retailers to reconsider or leave the state altogether.

Key Features Chart

Feature Description
Store Openings No new Bed Bath & Beyond stores in California.
Delivery Model Focus on online sales with 24- to 48-hour delivery, and same-day service in some areas.
Previous Locations Had over 80 stores in California prior to bankruptcy.
Company Status Acquired by Overstock.com and rebranded as Beyond, Inc., emphasizing online retail.
Governor’s Response Criticized the company’s relevance and suggested that it is no longer a significant player.

Deeper Dive: News & Info About This Topic

STAFF HERE BEVERLY HILLS WRITER
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.

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