California, September 5, 2025
News Summary
Bed Bath & Beyond’s executive chairman, Marcus Lemonis, announced that the company will stop new retail store openings in California due to high operational costs and regulatory burdens. Instead, they will focus on enhancing their online shopping experience, offering rapid delivery services to California residents within 24 to 48 hours. This decision highlights the broader challenges faced by businesses in California’s strict regulatory environment, which many argue stifles growth and innovation.
California – Bed Bath & Beyond’s executive chairman, Marcus Lemonis, has declared that the company will cease all new retail store openings in California due to the state’s prohibitive costs and regulatory obstacles. He underscored that this decision is grounded in economic realities rather than political factors.
Following its bankruptcy filing in 2023, Bed Bath & Beyond is undergoing a relaunch focused on enhancing its online shopping experience. The company emphasizes rapid delivery services, promising California residents delivery within 24 to 48 hours
Despite California’s reputation as a burgeoning hub of innovation, home to industries like Silicon Valley and Hollywood, it is often criticized for its strict regulatory environment. Critics argue that such regulations can stifle business growth and creativity by imposing substantial compliance costs. A review of the data from 2015 onwards shows that more companies have exited California than relocated there, with numerous businesses opting for states like Texas, Florida, and Nevada.
Prominent companies including Chevron, Tesla, SpaceX, and Charles Schwab have either moved portions of their operations out of California or scaled back their expansion plans, citing these regulatory challenges. There is a growing concern among businesses operating within California regarding regulations, labor issues, and crime rates in urban areas.
A direct consequence of California’s ambitious climate regulations—requiring businesses to report greenhouse gas emissions and manage energy consumption—is often high operational costs that can burden smaller firms disproportionately. These challenges have led some business leaders, including Lemonis, to call for policies that strike a balance between achieving equitable public goals and maintaining a thriving business environment.
In response to Lemonis’s comments, California Governor Gavin Newsom’s office indicated that his observations were potentially more about elevating Bed Bath & Beyond’s image rather than substantive critiques of the state’s business landscape. The governor highlighted that California continues to experience budget surpluses and significant investment levels, which he regards as signs of a sustainable business environment.
While governmental advocacy groups maintain that many state regulations are designed to safeguard public and worker interests, business groups argue for the need for “common sense moderation” in regulatory approaches. There is a rising trend among retailers to innovate outside of these regulatory frameworks to sustain profitability while still attempting to serve the California market effectively.
Overall, the decision by Bed Bath & Beyond reflects broader issues facing businesses in California, sparking continuing dialogue about the future of business operations in the state amid a backdrop of evolving regulations and economic realities.
FAQ
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Why is Bed Bath & Beyond halting new store openings in California?
Bed Bath & Beyond is stopping new retail store openings due to high operational costs and regulatory burdens in California, as stated by its executive chairman, Marcus Lemonis.
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What is Bed Bath & Beyond’s strategy for California after halting new openings?
The company plans to focus on rapid online delivery services for California residents, ensuring deliveries occur within 24 to 48 hours.
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How has California’s regulatory environment impacted businesses?
California’s strict regulations have led to increased operational costs, which can deter business growth and innovation, causing some companies to relocate their operations to states with more favorable business conditions.
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What are the main industries driving California’s economy?
California is recognized as a hub for innovation, particularly with its industries in technology and entertainment, including Silicon Valley and Hollywood.
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How is the state government responding to business concerns about regulations?
Governor Gavin Newsom’s office contends that many of the regulations are essential for public and worker safety, while also promoting the state’s strong financial health as an indicator of a viable business environment.
Key Features Summary
| Feature | Description |
|---|---|
| Decision | Bed Bath & Beyond ceases new store openings in California |
| Reason | High costs and regulatory burdens in California |
| Strategy Shift | Focus on rapid online delivery services (24-48 hours) |
| State Reputation | Known for innovation but criticized for regulatory environment |
| Business Impact | Increased operational costs deterring growth |
| Government Response | Claims regulations are important for safety and economic health |
Deeper Dive: News & Info About This Topic
- Business Wire: Statement from Marcus Lemonis
- MSN: Bed Bath & Beyond’s Decision
- Fox Business: Marcus Lemonis on California
- Entrepreneur: Marcus Lemonis on California’s Business Environment
- Wikipedia: 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.
