California, August 21, 2025
News Summary
Bed Bath & Beyond has decided not to open or operate new retail stores in California due to high operational costs and regulatory challenges. Executive Chairman Marcus Lemonis explained that the decision is based on economic realities rather than political factors. The company aims to pivot towards its online platform, offering fast delivery options to California customers, while planning to open 300 new stores in more favorable markets nationwide as part of its recovery strategy after a recent bankruptcy.
California
Bed Bath & Beyond has announced it will not open or operate new retail stores in California due to high operational costs and regulatory challenges. This decision, revealed by Executive Chairman Marcus Lemonis, marks a significant shift for the company as it seeks to streamline its operations amid financial difficulties.
Lemonis clarified that the choice is not influenced by political factors but is rooted in economic realities that the company faces in California. The state has been described as one of the most expensive environments for conducting business in the country, primarily because of the elevated taxes, fees, and wages associated with its regulations. As a result, the company faces substantial hurdles in being able to hire employees, maintain store operations, and deliver value to customers.
In place of traditional retail locations, Bed Bath & Beyond will focus on its online platform, BedBathandBeyond.com, to serve California customers. The company has committed to quick delivery times for online purchases, with options for delivery within 24 to 48 hours and, in some instances, same-day service. This strategy aligns with the ongoing retail trend where e-commerce continues to gain traction.
This decision comes on the heels of Bed Bath & Beyond’s recovery attempts following a bankruptcy filing in 2023. The company was unable to manage significant debt levels and failed in its turnaround strategies, which included seeking to revitalize its physical store presence. Now, with plans to open 300 new stores across the nation over the next two years, Bed Bath & Beyond’s strategic focus appears centered on expanding in less costly markets.
The company’s first new store, rebranded as Bed Bath & Beyond Home, opened near Nashville on August 8, symbolizing the start of its physical store revival outside of California. Despite facing criticism regarding its wage practices, Lemonis defended the company’s pay structure, asserting the goal remains to provide competitive wages in a challenging economic environment.
Overall, the elimination of physical stores in California signifies Bed Bath & Beyond’s continued transformation under new ownership by Beyond, Inc. This ownership change has led to a portfolio that includes established brands like Overstock and buybuy BABY. The company’s move is viewed as an adaptive strategy to mitigate risks and enhance profitability.
California Governor Gavin Newsom’s office expressed surprise at Bed Bath & Beyond’s recent developments. Nevertheless, there is hope among state officials for the company’s future relevance in the retail landscape.
FAQ
Why has Bed Bath & Beyond decided not to open stores in California?
The decision is driven by high operational costs, including taxes and regulatory fees, which make it challenging to operate stores profitably in California.
How will Bed Bath & Beyond serve California customers?
The company plans to utilize its online platform, offering products with fast delivery options of 24 to 48 hours, and potentially same-day delivery.
What is the future plan for Bed Bath & Beyond’s store openings?
Over the next two years, Bed Bath & Beyond intends to open 300 new retail locations nationwide, focusing on markets with more favorable business conditions.
What significant change has recently occurred in Bed Bath & Beyond’s ownership?
Bed Bath & Beyond is now under the ownership of Beyond, Inc., which includes brands such as Overstock and buybuy BABY, driving its strategy shift.
What was the outcome of Bed Bath & Beyond’s bankruptcy?
The company collapsed under significant debt in 2023 and is now restructuring to recover from the financial setback.
Key Features of Bed Bath & Beyond’s Recent Changes
| Feature | Details |
|---|---|
| Store Openings in California | None planned due to high costs and regulations. |
| Online Services | Focus on BedBathandBeyond.com with fast delivery options. |
| New Store Locations | Plans to open 300 stores in other locations nationwide. |
| Ownership | Now owned by Beyond, Inc., promoting strategic transformation. |
| Bankruptcy Recovery | Company collapsed in 2023, currently restructuring. |
Deeper Dive: News & Info About This Topic
- Business Wire: Statement from Marcus Lemonis
- Wikipedia: Bed Bath & Beyond
- USA Today: California Governor Newsom on Bed Bath & Beyond
- Google Search: Bed Bath and Beyond California news
- Kron 4: Bed Bath & Beyond Bashes California
- Encyclopedia Britannica: Retail
- KTLA: Bed Bath & Beyond California Updates
- Google News: Bed Bath and Beyond
- CBS News: Bed Bath & Beyond Stores in California
- Fox Business: Major Retailer on California’s Economic Reality
Author: STAFF HERE SAN DIEGO WRITER
SAN DIEGO STAFF WRITER The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, 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 Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
