August 24, 2025

Bed Bath & Beyond Prioritizes Online Sales Over California Stores

California, August 24, 2025

News Summary

Bed Bath & Beyond has decided not to open any stores in California, citing high regulatory costs and risks. Instead, the retailer will focus on enhancing its online platform, promising quick deliveries. This shift follows their bankruptcy filing in 2023 and acquisition by Overstock.com, leading to a rebranding as Beyond, Inc. The decision has sparked mixed reactions among California officials, with some disputing claims about the state’s business environment. Ultimately, this transition reflects a broader trend among retailers adapting to changing consumer behaviors and economic pressures.

California – Bed Bath & Beyond has announced it will not open or operate any stores in California, marking a significant shift for the home retailer. The decision, reiterated by Executive Chairman Marcus Lemonis, is influenced by what he described as California’s “overregulated, expensive, and risky environments for businesses.” Instead of physical stores, the company plans to focus on its online platform, BedBathandBeyond.com, promising delivery within 24 to 48 hours and in some cases same-day service.

Following its bankruptcy filing in 2023 and the closure of all its nationwide stores, Bed Bath & Beyond reopened its first location, Bed Bath & Beyond Home, near Nashville on August 8, 2024. Previously, the retailer had operated over 80 locations in California. Lemonis affirmed that the strategy to bypass California was practical and not politically motivated, aligning with the growing trend amongst retailers to pivot towards digital-first models in response to an evolving business landscape.

California Governor Gavin Newsom’s office humorously responded to the announcement, implying that Bed Bath & Beyond has lost its relevance. Some California officials rebut Lemonis’s assessment, stating that the state continues to be a robust market with around 39 million potential customers. Despite differing opinions on the market conditions, many agree that the high operating costs, taxes, and labor regulations in California significantly influence business decisions.

The shift in strategy follows Bed Bath & Beyond’s recent acquisition by Overstock.com, leading to a rebrand as Beyond, Inc. This transformation focuses on an online retail business model, mirroring a broader trend among retailers adapting to changes in consumer behavior and preferences, particularly as inflation influences shopping patterns.

While Lemonis previously voiced concerns over California’s burdensome regulatory policies, Newsom has commented on the increasing number of businesses departing the state due to its high operational costs. Data from retail analysts indicate that Bed Bath & Beyond’s challenges reflect larger pressures that many retailers face, especially during significant shopping periods such as back-to-school sales.

Overall, Bed Bath & Beyond’s decision not to expand its physical presence in California serves as a crucial case study of the ongoing changes in the retail landscape and the challenges posed by regulations and economic conditions.

FAQ

Why will Bed Bath & Beyond not open stores in California?

The retailer has decided not to operate any stores in California due to high operating costs and regulatory challenges that it considers excessive and risky for businesses.

What delivery options will be available through Bed Bath & Beyond?

Bed Bath & Beyond plans to offer 24- to 48-hour delivery and, in some instances, same-day service through its online platform, BedBathandBeyond.com.

What was Bed Bath & Beyond’s status before the bankruptcy?

Prior to filing for bankruptcy in 2023, Bed Bath & Beyond operated over 80 locations in California.

How has Bed Bath & Beyond changed structurally?

Following its acquisition by Overstock.com, Bed Bath & Beyond has shifted to a new online retail-focused business model and rebranded as Beyond, Inc.

Key Features of the Bed Bath & Beyond Transition

Feature	Detail
Decision to Avoid California Stores	Based on high costs and regulatory environment
Delivery Options	24-48 hours, some same-day service
Bankruptcy and Rebranding	Filed for bankruptcy in 2023, rebranded as Beyond, Inc.
Market Presence	Previously had over 80 stores in California
Online Focus	Shift to digital-first model for retail