California, August 24, 2025
News Summary
Bed Bath & Beyond has announced its decision to not open any stores in California, instead focusing on a digital-only business model. Executive Chairman Marcus Lemonis cited California’s high operational costs and regulatory challenges as key factors for this shift. After filing for bankruptcy in 2023 and closing all its physical stores, the company plans to offer fast online delivery, including same-day options, for its customers. The move reflects a broader trend in the retail sector as businesses adapt to changing consumer habits and economic pressures.
California
Bed Bath & Beyond has announced that it will not open or operate any stores in California, shifting its focus to an online-only business model. The announcement was made by Executive Chairman Marcus Lemonis, who cited California as “one of the most overregulated, expensive, and risky environments for businesses in America.” This strategic decision highlights the company’s efforts to streamline operations following its bankruptcy filing in 2023.
The home retailer, which once boasted over 80 locations in California, plans to deliver products within 24 to 48 hours, and in some cases, offer same-day service through its online platform, BedBathandBeyond.com. The transition to an online-only model aligns with broader trends within the retail sector, as companies adapt to the increasing demand for digital services from consumers.
In August 2024, Bed Bath & Beyond reopened its first physical location, called Bed Bath & Beyond Home, near Nashville after closing all its stores nationwide post-bankruptcy. While the company has embarked on a new path, Governor Gavin Newsom’s press office reacted mockingly to the announcement, suggesting that Bed Bath & Beyond was no longer a relevant entity in today’s market. This reflected the ongoing tension between state officials and businesses that have voiced frustration over California’s regulatory landscape.
Lemonis emphasized that their decision to avoid operating in California stemmed from business realities rather than political motivations. In recent times, he has expressed concern about the state’s high taxes, fees, and stringent labor regulations, aspects that he believes hinder business growth and stability. Despite his assertions, some California officials argue that the state continues to be a significant consumer market, housing nearly 39 million residents.
The disruption faced by Bed Bath & Beyond is consistent with a broader trend among retailers, particularly amidst rising inflation and changing consumer habits, especially during peak shopping seasons. Retail analysts have indicated that many businesses are struggling to remain profitable due to these economic pressures. Companies across various sectors have reevaluated their strategies, often choosing to prioritize online sales over traditional brick-and-mortar establishments.
In discussions about businesses relocating from California, Newsom has cited notable companies that have left the state due to high operating costs and regulatory constraints. This ongoing trend poses challenges for California, as the state endeavours to retain businesses and attract new investments.
As Bed Bath & Beyond adapts to its new strategy, it remains part of a larger narrative concerning the evolution of retail in America. The company’s pivot towards a digital-first model may be a blueprint for others navigating similar economic uncertainties in the years to come.
FAQ
Why isn’t Bed Bath & Beyond opening stores in California?
The company has decided not to open stores in California due to concerns about the state’s overregulation, high operating costs, and a challenging business environment.
What is the new delivery model for Bed Bath & Beyond?
Bed Bath & Beyond will focus on online sales with delivery options ranging from 24 to 48 hours, and in some cases, same-day delivery through their website.
How many locations did Bed Bath & Beyond have in California before the bankruptcy?
Before filing for bankruptcy, Bed Bath & Beyond had over 80 locations in California.
What is the current status of Bed Bath & Beyond?
After its bankruptcy, Bed Bath & Beyond has reopened its first location near Nashville in August 2024 and is now focusing on an online retail model.
Key Features Overview
| Feature | Details |
|---|---|
| Store Openings | No new stores in California |
| Delivery Model | 24- to 48-hour delivery, some same-day options |
| Bankruptcy Status | Filed for bankruptcy in 2023 |
| Physical Locations | First reopening on August 8, 2024, near Nashville |
| Previous Locations in California | Over 80 stores |
Deeper Dive: News & Info About This Topic
- USA Today
- Los Angeles Times
- KMPH News
- People
- KOMO News
- Wikipedia: California
- Google Search: Bed Bath & Beyond
- Google Scholar: Bed Bath & Beyond California
- Encyclopedia Britannica: Business
- Google News: Bed Bath & Beyond California
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.
