California, August 21, 2025
News Summary
Bed Bath & Beyond has announced it will not open new retail locations in California due to high operational costs and strict regulations. The company’s Executive Chairman stated that the economic landscape is too challenging for business. Instead, it will focus on serving California consumers through its online platform, providing efficient delivery options. This decision aligns with Bed Bath & Beyond’s efforts to recover following its bankruptcy in 2023, as it plans to open 300 new stores in other states over the next two years.
California Retail Landscape Shifts as Bed Bath & Beyond Pulls Out
Bed Bath & Beyond has officially announced that it will not be opening any new retail stores in California, citing the state’s high costs and strict regulations as the primary reasons for this decision. This announcement, made by the company’s Executive Chairman, indicates a significant shift for the retailer, which is currently trying to recover after declaring bankruptcy in 2023.
Marcus Lemonis, the company’s executive, made it clear that the choice is purely based on economic factors and is not politically motivated. Bed Bath & Beyond has determined that the current business environment in California—including high taxes, fees, and wages—renders operations unsustainable in that state. Lemonis described California as having one of the most heavily regulated and costly business landscapes in the United States, suggesting that such conditions make it challenging to hire employees, maintain operations, and deliver value to customers.
In lieu of physical retail locations, Bed Bath & Beyond plans to serve California consumers through its online platform, BedBathandBeyond.com. Customers in the state can expect swift delivery of their online orders within 24 to 48 hours, with some products available for same-day delivery. This response signifies a strategic pivot towards e-commerce as physical stores are no longer part of the plan in California.
This latest move aligns with Bed Bath & Beyond’s broader goal of revitalizing its brand following its bankruptcy filing in 2023, primarily caused by an overwhelming debt burden and unsuccessful attempts to reorganize. Over the next two years, the company aims to open 300 new stores across various states, indicating a renewed investment in physical retail outside of California.
Despite criticism regarding the company’s commitment to fair wages for workers, Lemonis defended the pay structure, asserting that Bed Bath & Beyond strives to offer competitive compensation. His comments emphasize the company’s intent to deliver quality products while generating profits for shareholders. However, he suggested that California’s regulatory landscape impedes the ability to achieve these goals effectively.
The decision to avoid California continues a strategic shift in the company’s operations following its acquisition by Beyond, Inc., which owns brands such as Overstock and buybuy BABY. Bed Bath & Beyond recently opened its first new store, named Bed Bath & Beyond Home, near Nashville, marking the start of its physical store revival in more business-friendly environments.
The announcement has drawn reactions from local government officials, including a response from California Governor Gavin Newsom’s office expressing surprise at the company’s decision and hope for its future relevance in the retail landscape.
Background Context
Bed Bath & Beyond’s bankruptcy in 2023 marked a dramatic decline for a once-favored retail giant. The company struggled with significant debt and ineffective turnaround strategies, leading to a complete reevaluation of its operating model. Focusing on e-commerce rather than traditional brick-and-mortar stores is part of a broader trend among retailers adapting to shifts in consumer behavior post-pandemic.
As Bed Bath & Beyond embarks on this new chapter, the retail environment continues to evolve, with other companies also reconsidering their presence in high-cost markets like California. By prioritizing online sales and exploration of more favorable locations, Bed Bath & Beyond hopes to regain stability and grow in the competitive retail space.
FAQ
Why is Bed Bath & Beyond not opening new stores in California?
The company cited high taxes, fees, and regulations as reasons for not conducting operations in California. They have deemed the economic landscape unsustainable for business.
How will Bed Bath & Beyond serve customers in California?
Instead of physical stores, Bed Bath & Beyond will serve California customers through its online platform. Deliveries are expected within 24 to 48 hours, with some same-day options available.
What is Bed Bath & Beyond’s plan for the future after bankruptcy?
The company plans to open 300 new stores across the nation over the next two years, focusing on locations outside of high-cost states like California.
Key Features Summary
| Feature | Description |
|---|---|
| New Store Openings | Bed Bath & Beyond will not open stores in California due to high operational costs. |
| Service Mode | Online sales will replace physical stores for California customers. |
| Delivery Options | Products will be delivered within 24 to 48 hours, with some same-day delivery available. |
| Future Plans | The company aims to open 300 new stores nationwide over two years, focusing on more business-friendly locations. |
| Background | Bed Bath & Beyond recently fell into bankruptcy due to debt and failed turnaround strategies. |
Deeper Dive: News & Info About This Topic
- Business Wire: Statement from Marcus Lemonis
- Wikipedia: Bed Bath & Beyond
- Fox Business: Major Retailer Says No to California
- Google Search: California retail landscape
- San Francisco Chronicle: Bed Bath & Beyond California Stores
- Encyclopedia Britannica: Beyond, Inc.
- Kron 4: Bed Bath & Beyond Bashes California
- Google News: Bed Bath & Beyond California
- CBS News: Bed Bath & Beyond Stores California
- USA Today: Governor Newsom on Bed Bath & Beyond
Author: STAFF HERE CORONADO
The Coronado Staff Writer represents the experienced team at HERECoronado.com, your go-to source for actionable local news and information in Coronado, San Diego 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 Coronado Island Film Festival, productions at Lamb’s Players Theatre, community workshops at John D. Spreckels Center, and iconic celebrations at Hotel del Coronado. Our coverage extends to key organizations like the Coronado Chamber of Commerce and Visit Coronado, plus leading businesses in hospitality, dining, and tourism that drive the local economy. As part of the broader HERE network, including HERESanDiego.com, HEREHuntingtonBeach.com, HERELongBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
