Bed Bath & Beyond snubs California, calling it “overregulated, expensive and risky”
Bed Bath & Beyond’s highly anticipated return to physical retail will bypass California, with parent company Beyond Inc. citing the state’s high costs and strict regulations as unsustainable for new store openings, according to Chain Store Age.
Company executive chairman Marcus Lemonis said the decision was driven by economics, not politics: “California has created one of the most overregulated, expensive, and risky environments for businesses in America. It’s a system that makes it harder to employ people, harder to keep doors open, and harder to deliver value to customers.”
Tariffs, labour costs, and fees were singled out as key challenges. Instead of opening brick-and-mortar locations in the state, the company will lean on e-commerce, offering Californians faster fulfilment — with 24- to 48-hour delivery and some same-day service.
“Californians will continue to get the products they love through BedBathandBeyond.com — but without the inflated costs created by an unsustainable model,” Lemonis added.
The move comes as Beyond prepares to restore its corporate name to Bed Bath & Beyond Inc., with shares set to resume trading on the New York Stock Exchange under the BBBY ticker on August 29.
Looking forward, the retailer plans a hybrid strategy, blending its billion-dollar digital platform with a network of smaller-format physical stores offering curated assortments. As part of this shift, the company will repurpose Kirkland’s locations — acquired in May for $5 million — into new Bed Bath & Beyond and buybuy Baby outlets over the next two years.
