California, September 13, 2025
News Summary
Bed Bath & Beyond has announced that its return to physical retail locations will not include California due to the challenging business environment characterized by high regulations and costs. Executive Chairman Marcus Lemonis expressed concerns over California’s steep taxes and burdensome fees, which he described as too risky for business. This decision comes as part of a broader trend of companies relocating away from California in search of more favorable conditions, with many businesses opting for states like Texas, Arizona, and Florida.
California
On August 20, Bed Bath & Beyond announced that its planned return to brick-and-mortar retail locations will not include any outlets in California. This decision is attributed to the state’s challenging business climate, marked by heavy regulations and high costs.
Executive Chairman Marcus Lemonis emphasized the financial and operational difficulties posed by California’s steep taxes, mandated fees, and labor wages. He described the state as “too risky for business,” underlining the substantial barriers that impede growth for retailers in the region.
Bed Bath & Beyond, which went through bankruptcy in 2023, has recently rebranded itself as Bed Bath & Beyond Home. The company has already opened a new store in Tennessee and is planning to launch approximately 80 additional locations across the United States next year, illustrating a shift in focus away from California.
Corporate Exodus from California
Bed Bath & Beyond is not alone in its decision to move away from California. Many companies have relocated their headquarters in pursuit of a more favorable business environment. For instance, realtor.com moved its headquarters to Texas in February 2023, aiming to escape the costly conditions prevalent in California.
A report from the Public Policy Institute of California indicates that businesses are increasingly influencing their relocation decisions by considering factors such as business costs, taxes, regulations, access to skilled labor, and hiring expenses. Between 2011 and 2021, 789 companies moved their headquarters out of the state, with a significant increase in relocations noted after 2017.
The flow of businesses away from California has been coupled with a notable reduction in firms moving into the state. The number of incoming companies decreased from 137 in 2011 to just 68 in 2021, revealing a troubling trend for California’s economic environment. Additionally, census data revealed that over 690,000 residents left California in 2023 alone, accelerating from an exodus of 818,000 in the previous year.
Top Relocation Destinations
Texas has emerged as the most favorable destination for these departures, with over 93,000 former Californians relocating there in 2023. Other top states include Arizona and Florida, capturing over 54,000 and 39,000 former residents, respectively. A common reason for this migration is California’s high cost of living and taxes, particularly since states like Texas and Florida do not impose a state income tax.
In terms of real estate, the median home price in California is reported to be approximately $859,700, nearly double the national average of $440,892. A study by Bankrate revealed that a household in California requires an annual income of around $213,447 to afford a typical home in the state.
Impact on California’s Economy
Several high-profile companies, including Chevron and Tesla, have also chosen to relocate. Chevron moved its headquarters to Houston in 2024, while Tesla shifted to Austin in 2021, citing high operational costs in the Bay Area as limiting their growth potential.
The uptick in corporate relocations highlights a growing trend of businesses leaving California, worsening the state’s financial situation and likely affecting its tax base and public service funding. Companies, including smaller businesses, express concern over the financial burdens stemming from California’s regulatory environment.
Despite these departures, California still boasts a robust economy, valued at around $3 trillion. It continues to attract businesses that are willing to navigate the challenges posed by the state’s regulatory landscape. The trend of corporate relocation reflects broader shifts in economic priorities and conditions influencing workforce trends and company operations.
Conclusion
As Bed Bath & Beyond forges ahead with plans to expand outside California, its decision encapsulates a growing sentiment among businesses grappling with a demanding economic atmosphere in the Golden State. The evolving corporate landscape signals fundamental changes in how companies evaluate their operational environments and make relocation decisions in pursuit of efficiency and profitability.
FAQ
What prompted Bed Bath & Beyond’s decision to not return to California for brick-and-mortar retail?
The company’s leadership cited California’s heavy regulations, high costs, and steep taxes as significant challenges that make it too risky for business.
Has Bed Bath & Beyond undergone any changes recently?
Yes, after filing for bankruptcy in 2023, the company has rebranded itself as Bed Bath & Beyond Home and is planning to open many new stores across the nation, excluding California.
What are the primary reasons driving companies to relocate from California?
High taxes, high costs of living, and burdensome regulations are commonly cited reasons. Other factors include seeking skilled labor and lower hiring expenses.
Which states are popular among former Californians?
Texas, Arizona, and Florida are among the most popular states for former Californians, with Texas being the top destination.
Key Features
| Feature | Details |
|---|---|
| Announcement Date | August 20, 2023 |
| Company Rebranding | From Bed Bath & Beyond to Bed Bath & Beyond Home |
| New Store Openings | New store in Tennessee, 80 more planned nationwide |
| Corporate Relocations | 789 companies relocated from California (2011-2021) |
| California’s Economic Impact | High operating costs and regulations driving companies away |
Deeper Dive: News & Info About This Topic
- Moneywise: Growing Exodus from California
- Tech Times: Companies Leaving California
- CoStar: Playboy’s Relocation from California
- Wikipedia: General Information
- Google Search: California Business Exodus
Author: STAFF HERE MISSION VIEJO WRITER
MISSION VIEJO STAFF WRITER The MISSION VIEJO STAFF WRITER represents the experienced team at HEREMissionViejo.com, your go-to source for actionable local news and information in Mission Viejo, Orange 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 Oso Fit 5K Fun Run and Community Health Fair, Walk Against Drugs & Community Fair, and National Night Out. Our coverage extends to key organizations like the Mission Viejo Chamber of Commerce and Providence Mission Hospital Mission Viejo, plus leading businesses in retail and education that power the local economy such as The Shops at Mission Viejo, Capistrano Unified School District, and Amazon Delivery Station. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
