Bed Bath & Beyond CEO Slams California Regulations, Announces No Retail Expansion in the State

Retail chain Bed Bath & Beyond will not be opening any new physical stores in California due to what its CEO describes as an unfriendly and unsustainable business climate. Marcus Lemonis, who heads the company, issued a statement criticizing the state’s regulatory framework, arguing that it places undue strain on businesses through high taxes, rising costs, and heavy compliance burdens.

“This isn’t a political statement — it’s a business decision rooted in practical concerns,” Lemonis said. “California has become one of the most challenging places to operate a retail business in the country. From mounting taxes to stringent regulations and skyrocketing labor costs, it’s a system that punishes employers, workers, and customers alike.”

Lemonis pointed out that despite the size of California’s economy, the state’s regulatory complexity and financial demands make it difficult for retailers to stay profitable while delivering value to customers.

“Retail businesses face a perfect storm here — high operating costs, inflexible labor rules, and an unpredictable regulatory landscape,” he said. “When those factors combine, they undercut our ability to grow responsibly and serve our customers effectively.”

Rather than opening new storefronts in the state, Lemonis said Bed Bath & Beyond will be focusing on an online-driven strategy tailored for California consumers. The company plans to increase its e-commerce investment in the region, with fast shipping options such as 24- to 48-hour delivery and, in many cases, same-day service.

“Californians will still have access to our full range of products — but without the overhead of expensive real estate and bureaucratic drag,” Lemonis stated. “We’re committed to serving our customers where they are, and in a way that makes economic sense for both them and us.”

This move adds to a broader conversation about the difficulties some businesses report when operating in states with extensive regulatory requirements. While California leaders argue that its policies promote worker protections, environmental sustainability, and long-term economic health, critics say those same rules can drive companies away and discourage new investments.

The decision by Lemonis may also have political implications. California Governor Gavin Newsom — a potential contender for the 2028 Democratic presidential nomination — has consistently championed the state’s progressive regulatory and tax structures as a national model. Business pushback like this may become part of a larger national debate about the role of government in the private sector.

At the same time, tensions between California and federal authorities continue to rise. Last week, a pro-immigration rally hosted by Newsom in Los Angeles, dubbed “Liberation Day,” drew federal attention when U.S. Border Patrol agents made a visible appearance near the event. A man was reportedly taken into custody during the demonstration, with footage showing several armed and masked agents in the area.

Border Patrol Chief Gregory Bovino told local news that the agency’s presence was about ensuring public safety and enforcing immigration laws. “We’re here to keep Los Angeles safe,” he said. “If elected officials won’t step up to protect our communities, we will.”

The rally itself was meant to counter Republican-led redistricting efforts in states like Texas, which Newsom claims are intended to diminish the political power of immigrant communities. In a fiery message posted on social media before the event, the governor took direct aim at Donald Trump and Texas Governor Greg Abbott, suggesting they were undermining democratic processes.

Newsom’s office responded forcefully to the presence of federal immigration enforcement officers at the rally. In an email to media outlets, his team declared, “We will not be intimidated by weak little Donald Trump, the criminal president.”

As the political climate heats up ahead of 2028, business decisions like the one made by Bed Bath & Beyond may become more common — and more controversial. For now, Lemonis stands by his position, saying his company will continue to serve California customers but without exposing itself to what he calls an “unsustainable” operating environment.

“Our obligation is to our customers, our employees, and our shareholders,” he concluded. “We can’t operate in a system that works against all three.