California, September 13, 2025
News Summary
California is experiencing a notable corporate exodus as Bed Bath & Beyond announces it will skip the state in its retail expansion. Citing heavy regulations and high costs, the company’s executive chairman highlights the risks non-conducive to business growth in California. This move is part of a broader trend where numerous companies, including Chevron and Tesla, are relocating for more favorable environments in states like Texas and Florida. With 789 companies leaving since 2011, the trend reflects a significant shift in businesses seeking to avoid steep taxes and living costs in California.
California is facing a significant corporate exodus as Bed Bath & Beyond announced on August 20 that it will exclude the state from its upcoming return to brick-and-mortar retail. The company’s executive chairman criticized California’s heavy regulations and high costs, stating the state has become too risky for businesses to thrive.
Bed Bath & Beyond, which filed for bankruptcy in 2023, has rebranded itself as Bed Bath & Beyond Home and is seeking to expand its footprint. It has already opened a new store in Tennessee and plans to launch about 80 more locations nationwide in the forthcoming year. Their decision to forgo California underscores growing concerns about the state’s business environment.
Executive chairman Marcus Lemonis pointed out the steep taxes, fees, wages, and regulations imposed by California that hinder effective business operations and growth. This sentiment aligns with trends observed across various sectors, where companies are relocating their headquarters to states with more favorable business conditions. Realtor.com, for instance, shifted its headquarters from California to Texas in February to escape the state’s costly business climate.
According to a report by the Public Policy Institute of California, several factors—including business costs, taxes, regulations, skilled labor availability, and hiring expenses—are pivotal in influencing corporate relocation decisions. Between 2011 and 2021, 789 companies moved their headquarters out of California, with a notable acceleration in departures following 2017. The decline in new firms moving into California is stark, dropping from 137 in 2011 to only 68 in 2021.
Analysts have suggested that reasons for the exodus often include high taxes, a rising cost of living, and an unfavorable business atmosphere. Census Bureau data reveals that in 2023 alone, 690,127 California residents left for better opportunities in other states—this followed an outflow of 817,669 in 2022. Texas emerged as the most sought-after destination with 93,970 residents relocating there in 2023, followed by Arizona and Florida.
Many Californians are increasingly seeking states with no state income tax, which adds to their financial viability. The median home price in California currently stands at $859,700, almost double the national average of $440,892, making it increasingly difficult for residents to afford housing. A Bankrate study indicates that a household in California would need an annual income of $213,447 to manage a typical home, which is significantly higher than most American households.
Major corporations, including Chevron, Tesla, and Charles Schwab, have also moved out of California for lower taxes and eased regulations. Chevron’s relocation to Houston in 2024 and Tesla’s shift to Austin in 2021 exemplify the trend of companies seeking better conditions for operation and growth. Reports highlight a surge in corporate relocations, with over 200 headquarters announcements occurring in 2021 alone, indicating a clear perception that California’s business environment is becoming increasingly unfavorable.
While the departure of numerous businesses could potentially impact California’s tax base and public service funding, the state still boasts an economy valued at approximately $4 trillion, maintaining its status as a significant player in the national economy. Nonetheless, the ongoing shift reflects broader changes in economic priorities and the conditions shaping company relocations across the country.
FAQ
Why did Bed Bath & Beyond exclude California from its retail expansion?
Bed Bath & Beyond’s executive chairman cited California’s heavy regulations, high costs, and business risks as factors for excluding the state in its retail return.
How many companies have relocated from California?
Between 2011 and 2021, 789 companies moved their headquarters out of California, with an increase in departures particularly noted after 2017.
What are common reasons for businesses moving out of California?
Common reasons include high taxes, high living costs, burdensome regulations, and the quest for a more favorable business climate.
What are the impacts of the corporate exodus on California’s economy?
The exodus could affect California’s tax base and funding for public services, although the state still has a robust economy valued at around $4 trillion.
Key Features of the California Corporate Exodus
| Feature | Details |
|---|---|
| Company Exclusions | Bed Bath & Beyond will not return to California for brick-and-mortar retail. |
| Corporate Relocations | 789 companies relocated from California between 2011 and 2021, increasing after 2017. |
| Causative Factors | High taxes, living costs, and regulatory burdens are primary drivers for relocation. |
| Demographic Shifts | 690,127 residents left California in 2023 alone, following 817,669 in 2022. |
| Alternative Destinations | Texas, Florida, and Arizona are popular relocation states for former Californians. |
| State Economy | California maintains a $4 trillion economy despite corporate departures. |
Deeper Dive: News & Info About This Topic
- Tech Times: Companies Leaving California
- CoStar: Playboy’s Relocation
- The Center Square: Texas Business Landscape
- Wikipedia: Business Exodus from California
- Encyclopedia Britannica: Economy of California
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.
