California, August 21, 2025
News Summary
Bed Bath & Beyond recently announced it will not be opening any new retail locations in California due to high operational costs related to taxes, wages, and regulations. This strategic decision is part of the company’s recovery efforts following its bankruptcy in 2023. Instead, the company plans to serve California customers through its online platform with promises of quick deliveries. Bed Bath & Beyond aims to open 300 new stores across the U.S. in the coming years while invoking a focus on digital commerce amid tough economic conditions.
California
Bed Bath & Beyond has officially announced that it will refrain from opening any new retail stores in California, citing insurmountable economic challenges. Marcus Lemonis, the Executive Chairman of the company, made this announcement on Wednesday, clarifying that the decision is driven by financial realities rather than political motivations.
Lemonis pointed out that the financial burden of conducting business in California is too high for the company. He specifically referenced the steep taxes, excessive fees, and high wages that make it difficult for businesses to operate successfully in the state. With California regarded as being one of the most overregulated and costly territories for businesses, Bed Bath & Beyond is choosing to direct its resources elsewhere.
Instead of establishing brick-and-mortar locations, Bed Bath & Beyond will focus on serving customers in California through its online platform, BedBathandBeyond.com. The company has committed to delivering products ordered online within 24 to 48 hours, with some items eligible for same-day delivery. This shift reflects a strategic move towards digital commerce, as the company aims to meet the needs of its customers while keeping operations cost-efficient.
Company’s Financial Challenges
This decision arrives in the context of Bed Bath & Beyond’s ongoing recovery efforts following its bankruptcy in 2023, a collapse that was largely due to significant debt burdens and ineffective turnaround strategies. The brand is now restructuring under the ownership of Beyond, Inc., which encompasses other brands such as Overstock and buybuy BABY. In pursuit of revitalization, Bed Bath & Beyond plans to open 300 new stores across the United States over the next two years, signaling a broader strategy of growth beyond California.
Lemonis has defended the company’s pay structure in light of criticisms that it does not fairly compensate its employees. He maintains that Bed Bath & Beyond strives to offer competitive wages while achieving its overarching goals of providing quality products and generating profits for shareholders and customers. However, he argues that the regulatory and economic conditions in California significantly impede these objectives and thus, the company’s decision to avoid the state.
Local Government Reaction
In response to Bed Bath & Beyond’s announcement, California Governor Gavin Newsom’s office expressed surprise at the company’s decision. They remarked that they remained hopeful about the brand’s future relevance, highlighting the ongoing economic transformation efforts in the state.
Bed Bath & Beyond’s commitment to creating a new retail experience is exemplified by the opening of its first new store, labeled Bed Bath & Beyond Home, near Nashville on August 8. This marks a notable step in the company’s physical store revival strategy as it adapts to changing market conditions and customer preferences.
Summary
The decision to avoid new retail locations in California illustrates Bed Bath & Beyond’s focus on navigating challenging economic waters, while still working towards an expansive national plan that prioritizes efficient online service. This transition aims to marry profitability with customer satisfaction in a climate of increasing operational complexities.
FAQ
Why is Bed Bath & Beyond not opening stores in California?
Bed Bath & Beyond has decided not to open stores in California due to high operational costs including taxes, wages, and regulatory burdens that make it challenging to operate profitably.
How will Bed Bath & Beyond serve customers in California?
The company will serve California customers through its online platform, offering delivery services within 24 to 48 hours, with options for same-day delivery.
What are the company’s future plans?
Bed Bath & Beyond plans to open 300 new stores across the country over the next two years as part of its recovery strategy following bankruptcy.
How does Bed Bath & Beyond’s pay structure compare to others?
Despite criticism about its pay practices, the company believes it provides competitive wages and aims to ensure employee satisfaction while remaining financially viable.
What recent developments have taken place at Bed Bath & Beyond?
The company opened its first new store, Bed Bath & Beyond Home, near Nashville on August 8, marking the beginning of its new retail strategy under recent ownership.
Key Features of Bed Bath & Beyond’s Recent Decision
| Feature | Description |
|---|---|
| Store Openings in California | Bed Bath & Beyond will not open new locations in California due to high costs. |
| Online Service | Customers in California will be served via BedBathandBeyond.com with prompt delivery options. |
| Future Expansion | The company plans to open 300 stores in other states over the next two years. |
| First New Store | Bed Bath & Beyond Home opened in Nashville on August 8. |
| Ownership Change | The company is under new ownership, which includes other brands like Overstock. |
Deeper Dive: News & Info About This Topic
- Business Wire: Statement from Marcus Lemonis
- Fox Business: Major Retailer Says No to California
- CBS News: Bed Bath & Beyond and California Stores
- San Francisco Chronicle: Bed Bath & Beyond in California
- Wikipedia: Bed Bath & Beyond
Author: STAFF HERE COSTA MESA WRITER
COSTA MESA STAFF WRITER The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, Orange 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 OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
