California, August 24, 2025

News Summary

Bed Bath & Beyond will shift to an online-only model in California, as announced by Executive Chairman Marcus Lemonis. Citing California’s overregulation and high business costs, the company will focus on providing an enhanced online shopping experience with rapid delivery options. This change follows the company’s bankruptcy and subsequent rebranding to Beyond, Inc. under Overstock.com. As consumer preferences evolve, this decision reflects the ongoing transformation of the retail sector, especially as the back-to-school shopping season approaches.

California: Bed Bath & Beyond to Shift to Online-Only Model

Bed Bath & Beyond’s Executive Chairman, Marcus Lemonis, has announced that the company will not be opening any stores in California, marking a significant shift in its operational strategy for the state. Lemonis criticized California for being “one of the most overregulated, expensive, and risky environments for businesses in America,” aligning with a broader trend among retailers adapting to digital-first models.

Following a bankruptcy filing in 2023, the home retailer closed all its stores across the country. Recently, however, it reopened its first location, Bed Bath & Beyond Home, near Nashville on August 8, 2024. In California, the company will focus on offering a robust online shopping experience, featuring delivery options ranging from 24 to 48 hours, and in some cases, same-day service through its website, BedBathandBeyond.com.

The announcement drew a sarcastic response from California Governor Gavin Newsom’s press office, which mockingly suggested that Bed Bath & Beyond had lost its relevance. In response, Lemonis clarified that the decision was driven by business realities rather than any political statement.

Background of Bed Bath & Beyond’s Operations

Before its bankruptcy, Bed Bath & Beyond operated over 80 locations throughout California. The company, which faced significant challenges due to shifting consumer behaviors and inflation, has since undergone a transformation under its new parent company, Overstock.com, and will operate under the rebranded name Beyond, Inc. This transition is indicative of the changing retail landscape, particularly as many businesses migrate towards online sales.

Despite Lemonis’s decisions, some California officials argue that the state continues to be a critical market, boasting nearly 39 million potential consumers. Retail analysts have noted that Bed Bath & Beyond’s struggles are reflective of broader pressures on the retail sector, where increasing operating costs and evolving consumer trends render traditional brick-and-mortar operations less viable.

California’s Business Environment

Lemonis has frequently raised concerns regarding California’s regulatory climate, which includes high taxes, substantial fees, and stringent labor regulations. The state’s business environment has led some companies to relocate to more favorable regions, a subject that Newsom has addressed, citing various businesses that have left California for cost-related reasons.

Future of Retail in California

The pivot to an online-only model by Bed Bath & Beyond aligns with a growing number of retailers who are similarly rethinking their strategies to suit digital commerce. As consumer habits evolve and the demand for convenience increases, businesses are seeking to optimize their operations for online engagement rather than relying on physical store locations.

This situation is a case study in the ongoing evolution of retail, demonstrating a significant shift in response to economic pressures and consumer preferences, particularly as the back-to-school shopping season approaches.

Conclusion

In summary, Bed Bath & Beyond’s recent announcement regarding its operations in California highlights the challenges faced by traditional retailers and indicates a possible future where online shopping takes precedence over physical storefronts. As the company seeks to adapt to its new business model, the implications for California’s retail landscape remain to be seen.

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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.