California, August 24, 2025
News Summary
Bed Bath & Beyond has announced it will not open any retail stores in California after its bankruptcy filing in 2023. Instead, the retailer is shifting focus to an online business model with rapid delivery options. Executive Chairman Marcus Lemonis cited high operating costs and regulatory challenges as reasons for this decision. Despite criticism from state officials, the company aims to adapt to changing consumer behaviors, emphasizing convenience and accessibility through its website.
California – Bed Bath & Beyond has announced that it will not open or operate any retail stores in California, marking a significant retreat for the home goods retailer in a state where it once boasted over 80 locations. The decision, made by Executive Chairman Marcus Lemonis, underscores the ongoing challenges businesses face in California, described by Lemonis as “one of the most overregulated, expensive, and risky environments for businesses in America.” Instead of storefronts, the company’s strategy will focus on providing online shopping options, promising 24- to 48-hour delivery and, in some cases, same-day service through its website, BedBathandBeyond.com.
After filing for bankruptcy in 2023, Bed Bath & Beyond closed all of its stores nationwide but recently reopened the first location under its new branding as Beyond, Inc., near Nashville on August 8, 2024. While this store represents the company’s new direction, it will not be replicated in California, where Lemonis pointed out that the economic landscape is fraught with obstacles, including high taxes and stringent labor laws.
In response to the announcement, the press office of California Governor Gavin Newsom issued a mocking statement suggesting that Bed Bath & Beyond was irrelevant. However, Lemonis clarified that the choice to avoid California stemmed from practical business considerations rather than political motivations. In the context of California’s economy, officials argue that the state still offers a vast market with nearly 39 million consumers, despite Bed Bath & Beyond’s significant withdrawal.
The move by Bed Bath & Beyond aligns with a broader trend among retailers adapting to digital-first models in reaction to changing consumer behavior, especially amid rising inflation and new shopping preferences, particularly evident during the back-to-school shopping season. Experts have linked the company’s struggles to larger pressures facing the retail sector as it navigates these economic challenges.
Before its bankruptcy, Bed Bath & Beyond operated a substantial network of stores across the United States, and a large portion of those outlets were located in California. However, as retail dynamics shift, the company’s focus will now be on establishing a strong online presence, providing consumers with enhanced convenience and accessibility.
Lemonis has previously voiced strong concerns regarding California’s economic climate, frequently citing the state’s high operating costs as a barrier for businesses. This perspective aligns with a trend observed by Newsom, who has noted that other companies are also deserting California due to similar financial pressures and regulations.
As Bed Bath & Beyond moves forward with their online-centric approach, it remains to be seen how their new strategies will resonate with consumers, particularly in competitive markets that are increasingly favoring e-commerce solutions. The retail landscape continues to evolve, prompting businesses to rethink traditional models and adapt to remain relevant in a changing economy.
FAQs
Why did Bed Bath & Beyond decide not to open stores in California?
The decision was made due to California being perceived as an overregulated environment with high operating costs, which makes it challenging for businesses to operate profitably.
What is Bed Bath & Beyond’s new business model following its bankruptcy?
The company has shifted to an online-only model, focusing on rapid delivery options like 24- to 48-hour and same-day service through its digital platform.
How many stores did Bed Bath & Beyond previously have in California?
Prior to its bankruptcy, Bed Bath & Beyond operated over 80 stores in California.
Key Features
| Feature | Details |
|---|---|
| Lemonis’s Announcement | No store openings in California. |
| Delivery Options | 24- to 48-hour delivery and same-day service. |
| Bankruptcy Date | Filed in 2023. |
| Reopening | First store reopened on August 8, 2024, near Nashville. |
| Former California Locations | More than 80 stores. |
Deeper Dive: News & Info About This Topic
- USA Today: California Governor Newsom on Bed Bath & Beyond
- Los Angeles Times: Bed Bath & Beyond’s Decision in California
- KMPH: Bed Bath & Beyond Exits California
- People: Gavin Newsom Responds to Bed Bath & Beyond
- KOMO News: Bed Bath & Beyond’s Challenges in California
- Wikipedia: Bed Bath & Beyond
- Google Search: Bed Bath & Beyond California
- Google Scholar: Bed Bath & Beyond Business Model
- Encyclopedia Britannica: Retail
- Google News: Retail News
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