• Bed Bath & Beyond will not open any stores in California due to high operational risks.
• Marcus Lemonis, chairman, cites California's business environment as overly regulated and expensive.
• The retailer recently opened a new store in Nashville while expanding its operations elsewhere.

Bed Bath & Beyond has decided against opening any retail locations in California, citing an unfavorable business climate. Marcus Lemonis, the executive chairman, expressed that “California has created one of the most overregulated, expensive and risky environments for businesses in America,” making it difficult for operations to succeed. He remarked that the decision is based on “reality,” emphasizing challenges in employing staff and maintaining store viability, according to CBS News and SFGate.

The closure of more than 300 stores in 2023 after the company filed for bankruptcy has prompted Bed Bath & Beyond to focus on online operations, particularly in California. Lemonis stated, “It’s a system that makes it harder to employ people, harder to keep doors open, and harder to deliver value to customers.” This shift in strategy includes the establishment of a quick delivery service rather than a traditional retail expansion in the state, as indicated by Newsweek and SFGate.

This announcement also drew remarks from California Governor Gavin Newsom's office, which mentioned the brand's total shutdown across the state and expressed skepticism about its rebirth, stating, “After their bankruptcy and closure of every store, like most Americans, we thought Bed, Bath & Beyond no longer existed.” Lemonis retorted to the governor’s office, indirectly affirming customer loyalty through online channels, as reported by CBS News and Newsweek.

Though Bed Bath & Beyond has begun new operations in Nashville, highlighting a smaller store footprint with a new name, Bed Bath & Beyond Home, it shows a significant pivot away from California. As Lemonis confirmed, “We will not participate in a system that undermines both” customers and shareholders, reinforcing its stance against California’s regulatory framework, according to SFGate and Newsweek.