Bed Bath & Beyond will move ahead with stores in California, reversing an earlier position from CEO Marcus Lemonis that the company would avoid the state.
The retailer confirmed that 12 combined-format locations, integrating The Container Store and Bed Bath & Beyond, will open in California.
Lemonis had previously said “we will not open or operate retail stores in California,” citing regulatory pressure and a challenging business environment.
The California openings form part of a broader nationwide initiative to merge the two brands’ in-store experiences. A total of 98 locations will undergo a reset over the coming months, transitioning to the combined format.
The shift is being driven through a chainwide “Store Changing” event at The Container Store, with around 30% of select categories and SKUs being cleared to make room for Bed Bath & Beyond inventory.
The updated stores will bring together The Container Store’s core strengths in organisation and in-home services with Bed Bath & Beyond’s wider home assortment. The concept will extend beyond California to locations across 33 additional states.
As part of the reset, stores are offering promotional discounts, including early opening hours over the weekend with an additional 5% reduction for early shoppers.
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“This is a reset with purpose,” said Jen Pape, senior vice president of stores at The Container Store. “We are actively reshaping our stores to make room for what’s next. By streamlining select categories today, we’re creating the space and flexibility needed to introduce Bed Bath & Beyond products and deliver a more complete home experience for our customers.”
The move marks a notable pivot from Lemonis’ earlier criticism of California’s operating climate, which included a public dispute with Governor Gavin Newsom. The company has not clarified whether its broader view of the state has changed.
The integration follows Bed Bath & Beyond’s agreement to acquire The Container Store for around $150 million in stock and convertible notes, as part of a wider push to build a full-service home platform.
The strategy spans three pillars, omnichannel retail, products and services, and home services, combining brands including Bed Bath & Beyond, Overstock.com, BuyBuy Baby and Kirkland’s, alongside service-focused businesses such as Elfa and Closet Works.
“This transaction will fill critical gaps in both our retail and home services strategy,” Lemonis said when the deal was announced. “As we build our company platform, any additional assets including talent must serve a clear purpose to our company’s long-term strategy.”
The company is also pursuing further expansion through a planned acquisition of F9 Brands, which owns Cabinets To Go and Lumber Liquidators, reinforcing its ambition to build an integrated, end-to-end home services ecosystem.
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