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Bed Bath & Beyond Shifts to Online-Only Model in California

Screenshot of Bed Bath & Beyond's online shopping platform with delivery details.

California, August 24, 2025

News Summary

Bed Bath & Beyond has decided to cease operations in California, opting for an online-only model due to what Executive Chairman Marcus Lemonis describes as an overregulated and costly business environment. The company plans to focus on enhanced online services, offering delivery within 24 to 48 hours. This move comes after filing for bankruptcy and closing all stores nationwide, with the brand now rebranded under Overstock.com as Beyond, Inc. The company’s decision has sparked mixed reactions, particularly from California officials who believe the market remains viable.

California

Bed Bath & Beyond has announced it will not open or operate any stores in California, according to the Executive Chairman Marcus Lemonis. This decision comes as a reaction to what Lemonis described as an environment that is “overregulated, expensive, and risky” for businesses in America.

The home goods retailer’s strategy in California will shift to focus on online services, specifically offering delivery within 24 to 48 hours, and in some cases, same-day delivery through its website, BedBathandBeyond.com. This is a significant departure from traditional brick-and-mortar retail, as the company looks to navigate the evolving business landscape.

Bed Bath & Beyond filed for bankruptcy in 2023 and subsequently closed all its stores across the nation. However, in a recent turn of events, the company reopened its first location, known as Bed Bath & Beyond Home, near Nashville on August 8, 2024. The retailer’s move to abandon physical stores in California illustrates a broader trend among retailers adapting to digital-first business models.

The announcement has sparked reactions, including a response from California Governor Gavin Newsom’s press office, which suggested the company was no longer pertinent in the state. In this humorous exchange, officials pointed to the significant consumer base in California, which totals nearly 39 million residents, arguing that the market remains substantial, regardless of Bed Bath & Beyond’s decision.

Lemonis emphasized that the choice to cease operations in California stems from practical business assessments rather than political motivations. Despite claims from the company’s leadership, some California officials maintain that the state still presents a valuable market opportunity.

Once a major presence in California with over 80 locations, Bed Bath & Beyond is now redirecting its focus on the online shopping experience. The company’s shift comes amid new ownership under Overstock.com, which has rebranded it as Beyond, Inc. This transformation aligns with the changing dynamics in retail, driven by shifting consumer behavior and inflationary pressures, particularly prevalent during the back-to-school shopping season.

Lemonis has voiced concerns regarding California’s regulatory framework, citing high taxes, fees, and labor regulations as significant hindrances to business operations. Such conditions have led to discussions about a broader trend of companies relocating from California in search of more favorable environments, reflecting on Governor Newsom’s comments regarding the high costs of operating in the state.

Analysts indicate that Bed Bath & Beyond’s experience is indicative of challenges that many retailers face today as they adapt to changing market conditions. These difficulties resonate with various brands striving to establish a robust online presence while managing operational costs amid a competitive landscape.

FAQ

Why has Bed Bath & Beyond decided not to open stores in California?

Bed Bath & Beyond has decided to focus on an online-only model in California due to what their Executive Chairman described as a challenging business environment that is overregulated and costly.

What delivery services will Bed Bath & Beyond provide in California?

The company plans to offer delivery within 24 to 48 hours, with options for same-day delivery through its website, BedBathandBeyond.com.

What changes occurred at Bed Bath & Beyond after its bankruptcy?

After filing for bankruptcy and closing all its stores, Bed Bath & Beyond reopened a new location, called Bed Bath & Beyond Home, and underwent a rebranding under the ownership of Overstock.com.

How has the government responded to Bed Bath & Beyond’s announcement?

California Governor Gavin Newsom’s office mocked the company’s decision, suggesting that Bed Bath & Beyond was no longer relevant in the state.

What was the company’s presence in California prior to this announcement?

Before filing for bankruptcy, Bed Bath & Beyond had over 80 store locations across California.

Key Features of Bed Bath & Beyond’s Shift

Feature Details
Strategy Change Online-only presence in California
Delivery Options 24-48 hours, some same-day delivery
Previous Store Locations Over 80 stores in California
Bankruptcy Status Filed in 2023, reopened a new store in Nashville in August 2024
Management Leadership Led by Executive Chairman Marcus Lemonis
Company Rebranding Now operates as Beyond, Inc. under Overstock.com
Market Response California officials argue the market remains relevant

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STAFF HERE HUNTINGTON BEACH
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.

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