California, August 21, 2025
News Summary
Bed Bath & Beyond has announced it will not open any new stores in California due to high operational costs and challenges. The company will focus on serving Californians through its online platform, reducing its physical retail footprint in the state. This decision is part of a broader strategy to recover from bankruptcy and aims to open 300 new stores nationwide in the upcoming years, highlighting a significant shift post-ownership changes.
California has officially been removed from the retail expansion plans of Bed Bath & Beyond. On Wednesday, Marcus Lemonis, the Executive Chairman of the company, announced that Bed Bath & Beyond will refrain from opening any new stores in the state due to the increased operational challenges and costs associated with doing business there.
Lemonis indicated that this decision stems from the economic realities that the company faces rather than any political motivations. The high taxes, fees, and wages in California make it unsustainable for the retailer to conduct business effectively. In his analysis, he referred to the state as having “one of the most overregulated, expensive, and risky environments for businesses in America,” asserting that the regulatory policies make it increasingly difficult to employ workers, maintain store operations, and deliver value to customers.
Rather than establishing brick-and-mortar locations, Bed Bath & Beyond plans to continue serving California customers through its online platform, BedBathandBeyond.com. Customers can expect deliveries within 24 to 48 hours, and in some cases, same-day service may be available. This online-only approach reflects a shift in strategy aimed at countering the challenges posed by California’s business landscape.
This announcement comes during a critical time for Bed Bath & Beyond as the company seeks to bounce back from its bankruptcy, which occurred in 2023 due to overwhelming debt and unsuccessful turnaround strategies. Looking ahead, the company intends to open 300 new stores nationwide over the next two years, marking an ambitious recovery initiative.
Despite facing criticism regarding worker compensation, Lemonis defended the company’s pay structure, asserting that Bed Bath & Beyond is committed to offering competitive wages to its employees. The primary focus is on providing valuable products while also generating profits for shareholders and customers. However, he emphasized that achieving these goals is considerably exacerbated by the conditions in California.
The decision to eliminate stores in California also aligns with a broader strategic transformation following a recent ownership change to Beyond, Inc. This new ownership also includes other brands like Overstock and buybuy BABY. The first new retail outlet, branded as Bed Bath & Beyond Home, recently opened near Nashville, marking a significant point in the company’s revitalization effort.
The reaction from California government officials, including Governor Gavin Newsom’s office, has been one of surprise regarding Bed Bath & Beyond’s renewed plans outside the state. They expressed hope for the company’s future relevance as it seeks to navigate the challenging retail landscape.
Frequently Asked Questions
Why is Bed Bath & Beyond not opening stores in California?
Bed Bath & Beyond’s decision stems from high operational costs, including taxes, fees, and wages, making it economically unfeasible to operate in California.
How will Bed Bath & Beyond cater to California customers?
The retailer will focus on servicing California customers through their online platform, with deliveries available within 24 to 48 hours.
How many stores is Bed Bath & Beyond planning to open nationwide?
The company aims to open 300 new stores across the country within the next two years as part of its recovery strategy.
What changes has Bed Bath & Beyond undergone recently?
The company has undergone a strategic shift following ownership changes, which include new branding and operational strategies aimed at revitalizing the brand.
What has the response from California officials been?
California officials have expressed surprise at the decision not to open stores in the state and hope for Bed Bath & Beyond’s sustained relevance in the future.
Key Features of Bed Bath & Beyond’s Recent Changes
| Feature | Details |
|---|---|
| Store Openings in California | None planned due to high costs |
| Delivery Timeline | 24 to 48 hours, with same-day options |
| New Store Count Nationwide | 300 new stores planned over two years |
| Recent Openings | Bed Bath & Beyond Home opened near Nashville |
| Focus on Employee Pay | Competitive wages offered despite criticism |
Deeper Dive: News & Info About This Topic
- Business Wire: Statement from Marcus Lemonis
- USA Today: California Governor Newsom on Bed Bath & Beyond Stores
- Fox Business: Major Retailer on California’s Economic Reality
- Kron4: Bed Bath & Beyond Critiques California
- CBS News: Bed Bath & Beyond and California Stores
- Wikipedia: Bed Bath & Beyond
- Google Search: Bed Bath & Beyond
- Google Scholar: Bed Bath & Beyond
- Encyclopedia Britannica: Bed Bath & Beyond
- Google News: Bed Bath & Beyond
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