Bed Bath & Beyond CEO Rejects California Expansion Over Business Climate

Marcus Lemonis, Executive Chairman of Bed Bath & Beyond, announced this week that the company will not open or operate any physical retail stores in California, citing the state’s regulatory and economic environment as prohibitive. Instead, the company plans to serve customers in the state exclusively through its online platform.

Lemonis issued a blunt statement that framed the decision not as political, but as a matter of business survival. “California has created one of the most overregulated, expensive, and risky environments for businesses in America,” he wrote. He argued that high taxes, fees, wages, and layers of regulation hamper the ability to hire staff, keep stores open, and deliver value to customers.

He added that even when the state reports budget surpluses, those are built on “the backs of ordinary citizens” and overburdened businesses. According to Lemonis, the burden makes entering or expanding in California untenable.

Rather than physical stores, Bed Bath & Beyond intends to rely on delivery strategies tailored to California—offering 24‑ to 48‑hour delivery and, in many cases, same-day fulfillment. The company says it will continue to serve California customers “on our terms,” through BedBathAndBeyond.com, without absorbing the costs it deems unsustainable within a brick‑and‑mortar model in that state.

Lemonis framed the move as a stand for “common sense,” suggesting that businesses deserve an environment where they can succeed, employees deserve stable jobs, and customers deserve fair pricing. He framed California’s system as fundamentally at odds with that vision.

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Political Ramifications and the Response

Because California Governor Gavin Newsom is widely regarded as a potential presidential contender, the move by a national retailer to reject expansion there adds political heat. The decision could be used by critics to bolster arguments that regulatory policies are driving business out or preventing new investment.

News of the decision also came amid heightened enforcement and visibility around immigration in California. U.S. Border Patrol made at least one arrest outside a Newsom-hosted rally in Los Angeles, drawing scrutiny and tension. That rally included rhetoric from Newsom attacking Trump and signaling resistance to GOP-led redistricting efforts in Texas.

The rally, billed as “Liberation Day,” was also marked by a visible presence of armed, masked Border Patrol agents. Video footage shows them escorting an individual in handcuffs as bystanders protested. Officials described the deployment as part of efforts to protect public safety.

In response, Newsom’s office issued a sharply worded email stating: “WE WILL NOT BE INTIMIDATED BY WEAK LITTLE DONALD TRUMP, THE CRIMINAL PRESIDENT.” The exchange underscores how business decisions, public policy, and political posturing are colliding in California’s charged atmosphere.

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A Strategy Built on Digital, Not Physical, Presence

This announcement comes as Bed Bath & Beyond is undergoing a reinvention after the retail chain’s 2023 bankruptcy and closure of its brick-and-mortar stores. The brand’s intellectual property is now held by Beyond, Inc., which is repositioning the retailer with an emphasis on e-commerce and streamlined operations.

In this new model, Lemonis argues, ship-to‑door and same-day service are sufficient to reach customers in more regulated markets. By avoiding physical presence, the company sidesteps what it considers unsustainable overhead tied to leases, labor, and regulatory compliance in states like California.

The decision also sends a message to state leaders and regulators: that certain policies can act as a barrier not just to startups, but to established brands seeking to expand or relaunch.

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What to Watch Going Forward

• Political Backlash: The move is likely to amplify scrutiny of California’s business regulations. Supporters of tighter regulation may view the decision as expected, while critics will see it as proof of overreach.

• Newsom’s Calculus: How the governor responds publicly—or whether he frames the decision as symbolic—may offer clues about how he plans to defend his state’s regulatory regime in a prospective national campaign.

• Consumer Impact: Californians who prefer in-store shopping may feel the absence of Bed Bath & Beyond locations, while others will still access the brand online—assuming delivery timelines and pricing remain competitive.

• Precedent for Other Retailers: Whether other national or regional retailers choose to follow suit may test whether California is losing its retail appeal.