Bed Bath & Beyond, once left for dead after its 2023 bankruptcy, is staging a comeback with new stores and a revamped strategy. But one state is being deliberately left out of the plan: California. Executive Chairman Marcus Lemonis has made it clear that despite California’s massive market, the state is simply “too costly, overregulated, and risky” to justify opening brick-and-mortar locations there.
This decision has sparked debate not only about the future of Bed Bath & Beyond, but also about California’s broader economic climate.
Lemonis Confirms No Stores for California
The story first broke on social media when Marcus Lemonis posted an official statement on X (formerly Twitter). “We will not open retail stores in California,” Lemonis wrote. He emphasized the move was not political but practical: “California’s system makes it nearly impossible for businesses to succeed, and I won’t put our company, our employees, or our customers in that position.”
The blunt message caught immediate attention. For a company planning to open 300 stores nationwide, excluding California, the country’s largest consumer market, is a striking decision.
Fox Business Interview: “Too Cost Prohibitive”
On Fox Business’ Big Money Show, hosts Brian Brenberg and Dagen McDowell pressed Lemonis on why California was singled out. Lemonis explained that while California had been “a big place for business for Bed Bath & Beyond,” the reality was that costs were too high.
“When you look at complexity on the real estate side, the regulatory side, the product and employee side, it is too cost prohibitive,” Lemonis said. He warned that California’s claim of being the “fourth-largest economy in the world” might not last if businesses continue to leave.
Law Enforcement and Shoplifting Concerns
Dagen McDowell raised another factor: rampant shoplifting and soft-on-crime policies in California’s major cities. She asked Lemonis whether the lack of prosecutions played into his calculations.
Lemonis acknowledged it was part of the equation. “When I take a pack of gum, you take $1,000 of something and not be prosecuted… that’s not something to subject the brand to,” he said. The implication was clear: high theft rates, coupled with minimal legal enforcement, add yet another layer of risk.
NewsDrift: A Strategy Rooted in Economics
The news channel NewsDrift offered additional context, framing the decision as part of Bed Bath & Beyond’s broader recovery strategy. After bankruptcy, the company, now operating under its parent Beyond Inc., is relaunching 300 stores outside California while doubling down on online sales.
According to NewsDrift, Lemonis described California as “overregulated, expensive, and risky,” making it difficult to employ staff, manage inventory, or keep prices competitive. The outlet also noted that California customers won’t be cut off entirely: online orders with 24-to-48-hour delivery, and even same-day service in select areas, will remain available.
A Hybrid Approach to Retail
NewsDrift also pointed out that Bed Bath & Beyond’s strategy reflects a broader industry shift toward hybrid retail models. Rather than blanketing every state with physical stores, companies are selectively reopening where conditions are favorable and leaning on e-commerce to cover areas like California.
For Bed Bath & Beyond, this means Californians can still shop online – but without the overhead that comes with managing storefronts in a high-cost, high-regulation state.
Newsmax: “One of the Worst Places to Make a Profit”
On Rob Schmitt Tonight on Newsmax, Lemonis elaborated even further. He said California may boast about being the world’s fourth-largest economy, but for businesses, “it’s also probably one of the worst places to try to make a profit.”
He cited the constant risk of litigation, government micromanagement, and excessive labor mandates as deal-breakers. “We want to be in markets where we can actually make a profit, provide competitive wages, and not wake up every morning wondering if we’re going to be sued by some class action lawsuit or overregulated by a local government,” he told Schmitt.
Comparing California to Other Departures
During the same Newsmax interview, Lemonis noted that Bed Bath & Beyond isn’t alone in avoiding or exiting California. He listed companies such as Tesla, Oracle, Hewlett-Packard, Charles Schwab, and even In-N-Out Burger, which recently moved its corporate office out of the state.
These high-profile exits suggest a trend: from tech to retail to fast food, major brands see California not as a land of opportunity but as a liability. Lemonis went so far as to say he’d “love to see Gavin Newsom out of office” and replace California’s regulatory philosophy with something more business-friendly.
Online Growth Is Still Strong
Despite its California pullback, Bed Bath & Beyond is no small player. Lemonis reminded audiences that the company is already doing over $1 billion annually in online sales through bedbathandbeyond.com. Many consumers, he noted, don’t even realize the website is still live and fully operational.
Physical stores, therefore, are a supplement – not the core – of the comeback strategy. For California residents, the message is that the brand is still accessible, just not in traditional mall or plaza locations.
A Calculated Gamble
From my perspective, Lemonis’ decision is as much about signaling as it is about economics. By drawing a hard line and excluding California, he’s sending a message to both shareholders and lawmakers: regulation has consequences.
While some might argue he’s giving up on a market of 40 million people, the counterpoint is that California shoppers are still reachable online. The costs of physical stores — real estate, theft, lawsuits, compliance – outweigh the potential benefits. It’s a gamble, but a calculated one.
California’s Problem Isn’t Just Retail
The Bed Bath & Beyond story mirrors a broader problem California faces. Businesses across industries – from manufacturing to finance – have cited the same issues: high taxes, heavy regulations, litigation risk, and rising crime. When even a household retail brand says “no thanks,” it reinforces the perception that the Golden State has priced itself out of competition.
Will California Change Course?
Whether California’s leaders heed this warning remains to be seen. Lemonis said businesses need to “take a stand and remind the state” that economic growth is not guaranteed. For now, though, Bed Bath & Beyond’s stance is firm: California is off the map.
As Lemonis put it bluntly on Fox Business, “We don’t think we can deliver a good product and make a profit, which is the idea behind business.”
Smart Growth Over Blind Expansion
The resurrection of Bed Bath & Beyond is a story of smart growth rather than blind expansion. By focusing on regions where it can operate sustainably and leaning on its billion-dollar e-commerce platform, the retailer is showing adaptability in a tough environment.
For California shoppers, it means the brand is still a click away – but for state lawmakers, it’s a reminder that policies have real-world consequences. If more companies follow Lemonis’ lead, California’s claim as the “fourth-largest economy in the world” may come with a growing asterisk: great for residents, but too costly for business.
Growing up in the Pacific Northwest, John developed a love for the great outdoors early on. With years of experience as a wilderness guide, he’s navigated rugged terrains and unpredictable weather patterns. John is also an avid hunter and fisherman who believes in sustainable living. His focus on practical survival skills, from building shelters to purifying water, reflects his passion for preparedness. When he’s not out in the wild, you can find him sharing his knowledge through writing, hoping to inspire others to embrace self-reliance.
