California, August 24, 2025
News Summary
Bed Bath & Beyond’s Executive Chairman Marcus Lemonis announced the retailer will not open any stores in California, opting to focus solely on its online platform. Lemonis criticized California’s business climate as overly regulated and costly. Following the company’s bankruptcy in 2023, they have restructured to offer rapid delivery services. Despite criticism from state officials, Bed Bath & Beyond believes it must adapt to remain relevant in the evolving retail landscape, which increasingly favors online shopping. Their first new location has opened in Nashville under a different brand name.
California – Bed Bath & Beyond’s Executive Chairman Marcus Lemonis announced that the home retailer will not be opening or operating any stores in California. This decision comes as a shift in strategy for the company, which has decided to focus exclusively on its online platform, BedBathandBeyond.com, for sales in the state.
Lemonis criticized California, labeling it “one of the most overregulated, expensive, and risky environments for businesses in America.” His comments come on the heels of Bed Bath & Beyond’s bankruptcy in 2023, which led to the closure of all its stores across the nation. Recently, however, the company reopened its first location under the new brand name, Bed Bath & Beyond Home, near Nashville on August 8, 2024.
As part of its new strategy in California, Bed Bath & Beyond aims to provide quick delivery options, including 24- to 48-hour fulfillment and, in some instances, same-day service. This move mirrors a growing trend among retailers to pivot to an online-first model as consumer preferences continue to evolve.
The California Governor Gavin Newsom’s office responded to Lemonis’s announcement, suggesting that Bed Bath & Beyond was losing relevance in the retail market. In light of this, Lemonis emphasized that the decision to avoid California is based on the company’s business realities rather than any political factors. Prior to its bankruptcy, Bed Bath & Beyond operated over 80 locations in California.
Despite Lemonis’s assertions about California’s business environment, some officials in the state argue that California remains a significant market with a consumer base of nearly 39 million residents. Lemonis has previously expressed concerns regarding the state’s regulatory landscape, which includes high taxes, extensive fees, and strict labor regulations.
The bankruptcy of Bed Bath & Beyond and its subsequent acquisition by Overstock.com has altered the company’s trajectory, with a rebranding that emphasizes a new business model focusing primarily on online retail. Newsom has commented on the broader trend of businesses leaving California due to high operational costs, noting several companies that have relocated to other states.
Retail analysts point out that Bed Bath & Beyond’s challenges are indicative of the pressures currently affecting many retailers amid inflation and shifting consumer behaviors, especially as the back-to-school shopping season approaches.
Background on Bed Bath & Beyond
Bed Bath & Beyond was once a dominant player in the retail space, operating more than 80 locations in California before filing for bankruptcy in 2023. The company’s recent acquisition by Overstock.com marked a significant change, redirecting its focus away from brick-and-mortar establishments to an online-centric model.
The Shift to Online-Only Model
The trend toward digital-first operations among retailers is accelerating, with Bed Bath & Beyond aiming to adapt to the changing landscape by leveraging its online platform. This comes amidst broader pressures facing the retail sector, as businesses navigate post-pandemic market dynamics and growing consumer expectations for convenience.
Market Impact and Future Outlook
The decision to cease physical operations in California reflects not just Bed Bath & Beyond’s internal strategy but also highlights ongoing discussions about the business climate in the state. Concerns over regulatory issues and operational expenses have become central themes in conversations around the future of commerce in California.
FAQ
Why is Bed Bath & Beyond not opening stores in California?
The company cited California’s overregulation, high costs, and risky business environment as key reasons for not opening physical stores in the state and instead focusing on online sales.
What delivery options will Bed Bath & Beyond offer in California?
Bed Bath & Beyond plans to provide 24- to 48-hour delivery, with some items available for same-day service through its online platform.
What is the current status of Bed Bath & Beyond?
Following its bankruptcy in 2023, Bed Bath & Beyond has reopened a location known as Bed Bath & Beyond Home near Nashville and is now focusing on an online retail model.
How has the retail landscape been affected recently?
Retail analysts indicate that many companies are facing challenges due to inflation and changing consumer behaviors, impacting traditional retail models.
Key Features
| Feature | Details |
|---|---|
| Decision | No store openings in California |
| Delivery model | 24- to 48-hour delivery and same-day service |
| Bankruptcy | Filed in 2023; all stores closed nationwide |
| New Location | Bed Bath & Beyond Home near Nashville, reopened on August 8, 2024 |
| Market Size | California has nearly 39 million consumers |
| Business Challenges | High operational costs, regulations, inflation |
| Transition | From physical stores to online retail model |
Deeper Dive: News & Info About This Topic
- USA Today: California Governor Newsom on Bed Bath & Beyond
- LA Times: Bed Bath & Beyond Won’t Reopen Stores in California
- KMPH: Bed Bath & Beyond Exits California
- People: Newsom Responds to Bed Bath & Beyond
- KOMO News: Bed Bath & Beyond’s California Operations
- Wikipedia: Bed Bath & Beyond
- Google Search: Bed Bath & Beyond
- Google Scholar: Bed Bath & Beyond California
- Encyclopedia Britannica: Bed Bath & Beyond
- Google News: Bed Bath & Beyond California
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