California, August 24, 2025
News Summary
Bed Bath & Beyond, under Marcus Lemonis’s direction, has announced it will not reopen stores in California, citing the state’s costly and overregulated business environment. The company plans to open 300 new neighborhood stores nationwide, with the first location launching in Nashville. Instead of physical stores, Bed Bath & Beyond will focus on enhancing its e-commerce platform to serve California customers. This decision underscores growing concerns among businesses regarding California’s ability to attract and retain retail operations.
California is experiencing significant shifts in its retail landscape as Marcus Lemonis, the Executive Chairman of Bed Bath & Beyond, announced that the company will not reopen any of its retail stores within the state. This decision stems from Lemonis’s criticism of California’s current business environment, which he described as “overregulated, expensive, and risky.” His comments were made on August 20, 2025, marking a notable turning point for the company, which had previously faced challenges including bankruptcy.
Bed Bath & Beyond is in the process of revamping its business strategy with a plan to open 300 new neighborhood stores across the nation. However, none of these locations will be situated in California. The first of the new concept stores, named Bed Bath & Beyond Home, was launched in Nashville on August 8, 2025. Lemonis clarified that the decision not to include California in their expansion efforts is grounded in economic realities rather than political motives. He articulated that “this isn’t about politics—it’s about math,” highlighting the financial strain caused by high taxes, fees, wages, and significant regulatory hurdles that define the business climate in California.
The ongoing discourse between Lemonis and California Governor Gavin Newsom has intensified concerns regarding the state’s appeal to businesses. In response to Lemonis’s statements, Governor Newsom took to social media, making light of Bed Bath & Beyond’s prior bankruptcy and questioning the retailer’s relevance after the closure of all its stores in 2023. This exchange underscores a larger debate about the balance between necessary regulations meant to protect workers and the potential pitfalls of overregulating that may dissuade businesses from operating within the state.
Despite the absence of physical retail stores, Bed Bath & Beyond has plans to utilize an e-commerce platform to meet the needs of California customers through delivery services. A spokesperson for the Brand House Collective, the entity managing Bed Bath & Beyond, stated that while there are intentions for further expansions, California will not be included in their roadmap until the business climate improves.
The situation reflects a broader trend in which numerous companies are reconsidering their operations in California, citing similar concerns about cost and regulation as reported by numerous other businesses. Lemonis has called for “common sense governance” aimed at enhancing the business environment in California, with the hope of making it more conducive for retail operations. The crux of this debate ultimately hinges on differing philosophies regarding the role and extent of government regulation in supporting both businesses and the general populous.
In summary, Bed Bath & Beyond’s strategic decisions highlight significant economic concerns associated with operating in California, along with discussions about the necessity of regulatory frameworks to protect various stakeholders. The company’s pivot towards an e-commerce model illustrates a growing trend in retail as businesses adapt to the changing economic landscape.
FAQ Section
Why has Bed Bath & Beyond decided not to reopen stores in California?
Marcus Lemonis, Executive Chairman, stated that California’s business environment is overly regulated and costly, impacting the company’s decision.
What is Bed Bath & Beyond’s new strategy?
The company plans to open 300 new neighborhood stores nationwide, but none will be located in California, focusing instead on e-commerce and delivery services.
What did Governor Gavin Newsom say about Bed Bath & Beyond’s situation?
Governor Newsom mocked the company’s previous bankruptcy and questioned its relevance in the current retail landscape.
What are the factors Lemonis identified as barriers to doing business in California?
He cited high taxes, fees, wages, and an excessive amount of regulatory requirements as challenges to profitability.
How does Bed Bath & Beyond plan to serve customers in California?
While the company will not have physical stores in California, it intends to fulfill customer needs through online sales and delivery services.
Key Features Summary
| Feature | Description |
|---|---|
| Decision Not to Reopen | Bed Bath & Beyond will not reopen any of its retail locations in California. |
| Business Environment Criticism | CEO Lemonis emphasized California as being overregulated and costly. |
| New Store Concept | Introduction of 300 new neighborhood stores nationwide, with none in California. |
| Online Focus | The company will offer services through an e-commerce platform and delivery in California. |
| Government Critique | Lemonis called for improved governance to foster better business conditions in California. |
Deeper Dive: News & Info About This Topic
- Business Wire: Statement from Marcus Lemonis
- USA Today: Governor Newsom’s Response
- CBS News: Bed Bath & Beyond California Stores
- KBTX: Why Stores Won’t Open in California
- Wikipedia: Bed Bath & Beyond
Author: STAFF HERE HUNTINGTON BEACH
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