Major Retailer CEO Declines California Expansion, Citing High Costs and Regulations
The CEO of Bed Bath & Beyond, Marcus Lemonis, has announced that the company will not be opening new retail stores in California, pointing to what he describes as one of the nation’s most challenging business environments.
“This decision isn’t about politics — it’s about reality,” Lemonis explained in a statement. “California has become one of the most expensive and overregulated states for businesses.
Higher taxes, rising wages, and constant regulatory hurdles make it difficult for companies to stay competitive.”
Instead of physical store expansion, the company will focus on a California-based online strategy, offering 24–48-hour delivery, and in many cases, same-day service through BedBathandBeyond.com.
According to Lemonis, this approach ensures that customers in the state will still have access to their favorite products without the added costs tied to what he calls an “unsustainable retail model.”
He added: “Businesses deserve the chance to succeed. Employees deserve jobs that last. And customers deserve fair prices.
California’s current system makes all of this harder to achieve.”
The decision comes as Governor Gavin Newsom, widely speculated to be considering a 2028 presidential run, faces increasing scrutiny over California’s economic and immigration policies.
Recently, federal authorities maintained a visible presence at one of Newsom’s Los Angeles rallies, underscoring ongoing tensions between state and federal priorities.
Official statement regarding @BedBathBeyond
We will not open retail stores in California.
This isn’t about politics — it’s about reality.
California’s system makes it nearly impossible for businesses to succeed, and I won’t put our company, our employees, or our… pic.twitter.com/G5dSaigB3y— Marcus Lemonis (@marcuslemonis) August 20, 2025
For California shoppers, Lemonis reassured: “We’re not leaving customers behind. We’re just adapting to a model that works — one that puts their needs first.”
