California, August 21, 2025
News Summary
Bed Bath & Beyond has announced it will no longer operate retail stores in California due to the high costs of taxes, fees, and wages. Executive Chairman Marcus Lemonis stated that economic factors drove this decision rather than political motivations. Customers in California will be served through the company’s online platform, which offers fast delivery options. This move aligns with the company’s strategy to recover from bankruptcy while planning to open 300 new stores nationwide over the next two years.
California — In a significant shift in its business strategy, Bed Bath & Beyond will no longer open or operate retail stores in California, as announced by Marcus Lemonis, the company’s Executive Chairman. This decision, deemed necessary for survival, cites California’s high taxes, fees, and wages as the primary reasons for the move. Lemonis highlighted that the operational environment in California is one of the most regulated and costly for businesses in the United States.
Lemonis specified that the company’s departure from physical locations is driven by economic factors rather than political motivations. He pointed out that the existing policies in the state create barriers that hinder the ability to employ staff, maintain operations, and provide value to customers. Going forward, Bed Bath & Beyond will serve California customers through its online platform at BedBathandBeyond.com, where purchases can be delivered within a staggering 24 to 48 hours, with some options for same-day service.
This strategic shift comes on the heels of Bed Bath & Beyond’s efforts to recover from bankruptcy, a process that was marked by substantial debt and ineffective turnaround strategies that led to the company’s collapse in 2023. To rejuvenate its business, the company announced plans to open 300 new stores nationwide over the next two years, a critical component of their revival strategy.
Despite facing criticism regarding employee compensation, Lemonis defended the company’s pay structure, asserting that their wages are competitive. He reiterated that the overarching goal remains to deliver quality products while being profitable for both shareholders and customers. However, the challenging business climate in California has prevented the company from achieving these objectives within the state.
The decision to eliminate physical stores in California aligns with Bed Bath & Beyond’s recent strategic shift following its ownership change to Beyond, Inc., which oversees various brands including Overstock and buybuy BABY. The company’s first new store, branded as Bed Bath & Beyond Home, recently opened near Nashville on August 8, illustrating the beginning of its physical store revival outside of California.
California Governor Gavin Newsom’s office responded to the announcement by expressing surprise at the company’s decision and conveyed hopes for the future relevance of Bed Bath & Beyond in the retail landscape.
Background on Bed Bath & Beyond
Founded in 1971, Bed Bath & Beyond previously established itself as a major player in retail home goods. However, in recent years, the company faced a series of financial challenges, leading to its bankruptcy filed in early 2023. The brand has since sought to regain its footing by transitioning towards more viable business practices, including online sales and targeted retail expansions outside of California.
Future Plans and Market Impact
With the new store openings planned across the country, Bed Bath & Beyond aims to reposition itself within the competitive retail market. Their focus on e-commerce and a streamlined operational model is crucial as they navigate the post-bankruptcy landscape while attempting to maintain relevance in an ever-evolving industry.
FAQ
Why is Bed Bath & Beyond not opening stores in California?
Bed Bath & Beyond has cited high taxes, fees, and wages as well as California’s overregulation as reasons for not opening retail stores in the state.
How will Bed Bath & Beyond serve customers in California?
The company plans to deliver products through its online platform, with delivery options within 24 to 48 hours, including some same-day service.
What is the company’s strategy moving forward?
Bed Bath & Beyond intends to open 300 new stores across the nation while focusing on enhancing its online sales structure following its bankruptcy recovery.
How does Bed Bath & Beyond’s decision affect its employees?
While there has been criticism regarding fair wages, the company maintains that its pay structure is competitive and aims to provide good employee compensation.
What was the response from California’s government?
California Governor Gavin Newsom’s office expressed surprise at the company’s decision and hopes for its future relevance within the state’s retail market.
Deeper Dive: News & Info About This Topic
- Business Wire: Statement from Marcus Lemonis
- USA Today: California Governor Newsom on Bed Bath & Beyond Stores
- Fox Business: Bed Bath & Beyond’s Economic Reality
- Kron 4: Bed Bath & Beyond on California Regulations
- CBS News: Bed Bath & Beyond Store Updates
- Wikipedia: Bed Bath & Beyond
- Google Search: Bed Bath & Beyond
- Google Scholar: Bed Bath & Beyond
- Encyclopedia Britannica: Bed Bath & Beyond
- Google News: Bed Bath & Beyond
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