Bed Bath & Beyond to skip California stores

Bed Bath & Beyond will not open California stores, shifting to online delivery amid regulatory and cost pressures.

California Exit Tests Bed Bath & Beyond Growth

Bed Bath & Beyond’s Executive Chairman Marcus Lemonis announced on Wednesday that the retailer will not open or operate retail stores in California. He cited higher taxes, fees and wages, along with what he called endless regulations that undermine growth. The company will instead serve California customers through bedbathandbeyond.com with delivery times of 24 to 48 hours and, in some cases, same day service.

The move comes as Bed Bath & Beyond works to revive its brand after filing for Chapter 11 in 2023. Under a rebranded parent company, the group aims to open about 300 shops nationwide over the next two years and invests in online channels. The firm has linked its strategy to Overstock and Kirkland's partnerships and plans to use smaller neighborhood formats while maintaining a broad online presence. The ticker BBBY will begin trading on the NYSE on Aug 29 as part of a wider branding and asset strategy.

Lemonis frames the California decision as a business choice rather than a political statement, underscoring the cost of doing business in a high-regulation state. The shift toward online sales and smaller formats reflects a broader retail trend to limit fixed costs while expanding reach. The plan to roll out 300 shops nationwide signals ambition, but it also raises questions about execution, supply chains, and real estate risk. Investors will watch how the multi-brand strategy with Overstock assets and Kirkland's licenses performs against evolving consumer expectations and regulatory pressure.

Highlights

Speed and scale will decide if a lean online-first model can replace large footprints.