California, August 21, 2025
News Summary
Bed Bath & Beyond has announced the closure of all retail stores in California due to high operational costs including taxes, fees, and wages. The company, now focusing on online sales, plans to serve California customers with speedy delivery options. This decision aligns with its efforts to recover from its 2023 bankruptcy and transition to new ownership. Bed Bath & Beyond aims to open 300 stores in other US locations over the next two years while adapting to the changing retail landscape.
California
Bed Bath & Beyond has officially decided to cease all retail store operations in California, according to an announcement made by Executive Chairman Marcus Lemonis on Wednesday. The choice stems primarily from the state’s high operational costs, including steep taxes, fees, and labor wages, which make it unsustainable for the company.
Lemonis pointed out that this decision is fueled by economic realities rather than political motivations. He referred to California as providing “one of the most overregulated, expensive, and risky environments for businesses in America,” stating that the policies in the state pose major challenges in employing workers, maintaining storefront operations, and delivering quality products to customers. The company’s shift away from traditional brick-and-mortar stores will redirect its focus to online sales through its website BedBathandBeyond.com, ensuring that products can be delivered to California residents within 24 to 48 hours, with some offering same-day service.
This strategic move coincides with Bed Bath & Beyond’s effort to recover after its collapse in 2023 due to substantial debt and ineffective turnaround strategies. The company is aiming to rebound by establishing 300 new locations in other in the United States within the next two years. The first new store, branded as Bed Bath & Beyond Home, was opened near Nashville on August 8, marking a significant step in the company’s revival of physical retail.
Despite criticism regarding the pay structure of employees, Lemonis defended the company’s commitment to offering competitive wages. The leadership has expressed a clear goal of providing high-quality products while ensuring profitability for both shareholders and customers, despite the ongoing challenges posed by California’s business environment. The company’s exit from California is a continuation of a larger strategic shift following its recent ownership transition to Beyond, Inc., which encompasses brands such as Overstock and buybuy BABY.
The California Governor’s office remarked with surprise at Bed Bath & Beyond’s re-emergence in the retail market and expressed hope for the company’s future relevance in the retail sector.
Background of Bed Bath & Beyond
Founded in 1971, Bed Bath & Beyond has been a staple retail chain known for home goods and essential products. The company experienced significant growth in the early 2000s but began struggling financially in the late 2010s, culminating in a bankruptcy filing in 2023. The ongoing transition under new ownership aims to revitalize the brand and shift its business model towards online retail.
Strategic Changes in the Retail Environment
This decision by Bed Bath & Beyond is reflective of broader trends in the retail industry. Many retailers are increasingly focusing on e-commerce as operational costs related to physical stores rise. Companies are facing pressure to adapt to consumer demands for convenience and speed, driving them to enhance their online services rather than expand their physical presence in increasingly expensive markets like California.
Conclusion
As Bed Bath & Beyond pivots from operating physical stores in California to enhancing its online presence, it underscores the challenges that businesses face in high-cost regions. The company’s future will depend on its ability to adapt to new operational modalities while maintaining product quality and affordability for consumers.
Frequently Asked Questions (FAQ)
1. Why is Bed Bath & Beyond not opening stores in California?
Ability to sustain operations was hindered by high taxes, fees, and wages, making expansion unviable.
2. What is the company’s new focus after leaving California?
Bed Bath & Beyond plans to enhance its online services through its website, offering speedy delivery options to California customers.
3. How many new stores are planned across the US?
The company intends to open 300 new stores nationwide over the next two years.
4. What is the current status of Bed Bath & Beyond?
The company emerged from a bankruptcy filing in 2023 and is now focusing on rebuilding under new ownership.
5. What challenges does the retail industry face?
High operational costs and the need to adapt to consumer preferences are major issues for businesses in the current market.
Deeper Dive: News & Info About This Topic
- Business Wire: Statement from Marcus Lemonis
- Fox Business: Major Retailer Says No to California
- San Francisco Chronicle: Bed Bath & Beyond in California
- National Review: California Regulations Force Another Big Business Out
- USA Today: California Governor Newsom on Bed Bath & Beyond
- Wikipedia: Bed Bath & Beyond
- Google Search: California business environment
- Encyclopedia Britannica: Business
- Google News: Bed Bath & Beyond
- Google Scholar: retail challenges California
Author: STAFF HERE HUNTINGTON BEACH
The Huntington Beach Staff Writer represents the experienced team at HEREHuntingtonBeach.com, your go-to source for actionable local news and information in Huntington Beach, 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 the Huntington Beach Surf City USA Marathon, the U.S. Open of Surfing, Fourth of July celebrations at the Huntington Beach Pier, and community festivals at Huntington Beach Central Park. Our coverage extends to key organizations like the Huntington Beach Chamber of Commerce and Visit Huntington Beach, plus leading businesses in retail, hospitality, and outdoor recreation that drive the local economy. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
