California, September 5, 2025
News Summary
Bed Bath & Beyond has announced it will not be opening any new retail stores in California, attributing the decision to high operational costs and a challenging regulatory environment. As the company focuses on its recovery after bankruptcy, it plans to enhance online delivery services, aiming for expedited shipping within 24 to 48 hours. This decision reflects broader trends of businesses struggling with California’s strict regulations, causing many to rethink their operations in the state.
California
Marcus Lemonis, the executive chairman of Bed Bath & Beyond, has announced that the company will halt plans to open any new retail stores in California. This decision is primarily attributed to the state’s high costs and regulatory burdens, which Lemonis claims create a challenging business environment. He clarified that this decision stems from economic realities rather than political motivations.
The move comes as Bed Bath & Beyond is in the process of relaunching itself after filing for bankruptcy in 2023. In light of the difficult retail landscape, the company is pivoting its focus toward enhancing its online delivery services for California residents, promising expedited deliveries within 24 to 48 hours.
California, known as a hub of innovation due to its thriving industries such as Silicon Valley and Hollywood, is simultaneously recognized for its stringent regulatory environment. Critics point out that these regulations often deter business growth and innovation by imposing significant operational costs and compliance requirements. Since 2015, more companies have exited California than have entered, with numerous high-profile businesses relocating to states like Texas, Florida, and Nevada.
Notable firms that have moved parts of their operations out of California include Chevron, Tesla, SpaceX, and Charles Schwab. While some companies maintain their headquarters in California, they have scaled back expansion plans or raised concerns regarding the state’s regulatory landscape, issues with labor, and property crime challenges.
California’s ambitious climate regulations mandate businesses to report their greenhouse gas emissions and implement measures to reduce energy consumption, often incurring high costs that some assert stifle smaller businesses. This has become a major point of contention between business leaders advocating for regulatory moderation and advocacy groups that argue these regulations are crucial for protecting public and worker interests.
In response to Lemonis’s remarks, California Governor Gavin Newsom’s office suggested that his comments were more about restoring the company’s reputation than providing a substantive critique of the state. Newsom highlighted California’s substantial budget surpluses and significant investments as indicators of a sustainable business environment.
Business leaders—including Lemonis—stress the necessity for policies that can balance equitable goals with the need for business viability and competitiveness. There is a noticeable trend among retailers seeking to innovate outside the existing regulatory framework, adapting their strategies to achieve profitability while navigating the complexities of California’s business landscape.
Key Context
The tension between regulatory compliance and business growth continues to shape discussions within California’s economic environment. Many companies feel constrained by regulations that, while intended to protect the public, may inadvertently stifle innovation and expansion opportunities. With California’s status as a leader in innovation at stake, the decisions made by companies like Bed Bath & Beyond may reflect broader trends that could influence future business dynamics in the state.
FAQ
Why is Bed Bath & Beyond halting store openings in California?
Bed Bath & Beyond is halting store openings due to California’s high costs and regulatory burdens, which the company views as a challenging business environment.
What is Bed Bath & Beyond’s new strategy in California?
The company is shifting its focus to enhancing online delivery services for California residents, aiming for deliveries within 24 to 48 hours.
What are the implications of California’s business regulations?
California’s stringent regulations are perceived to impose significant costs on businesses, potentially stifling growth and innovation, leading some to move operations out of the state.
Summary of Key Features
| Feature | Description |
|---|---|
| Store Openings Halted | Bed Bath & Beyond will not open new stores in California. |
| Focus on Online Delivery | Company plans to offer rapid online delivery within 24-48 hours. |
| California Regulatory Environment | High costs and strict regulations are creating challenges for businesses. |
| Company Moves | Several well-known companies have relocated from California in recent years. |
| Economic Impact | Ongoing discussions about balancing regulations with business growth. |
Deeper Dive: News & Info About This Topic
- Business Wire: Statement from Marcus Lemonis
- Fox Business: Bed Bath & Beyond Changes
- Entrepreneur: Marcus Lemonis on California Regulations
- Google Search: California business regulations
- Newsweek: Bed Bath & Beyond’s Decision
- Wikipedia: California
Author: STAFF HERE LOS ANGELES WRITER
LOS ANGELES STAFF WRITER The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles County, and beyond, specializing in "news you can use" with coverage of 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 from years of dedicated reporting and strong community input, including local press releases and business updates, while delivering top reporting on high-value events like the Academy Awards, LA Auto Show, and Los Angeles Marathon, extending coverage to key organizations such as the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology like Warner Bros. and SpaceX, and as part of the broader HERE network including HEREAnaheim.com , HERECostaMesa.com , HEREHuntingtonBeach.com , and HERESantaAna.com , providing comprehensive, credible insights into Southern California's dynamic landscape. HERE Anaheim HERE Beverly Hills HERE Coronado HERE Costa Mesa HERE Hollywood HERE Huntington Beach HERE Long Beach HERE Los Angeles HERE Mission Viejo HERE San Diego HERE Santa Ana
