Bed Bath & Beyond will not open stores in California due to overregulation, high taxes

Beyond, Inc., the parent company of Bed Bath & Beyond, announced it will not open retail locations in California and will instead serve customers in the state exclusively through e-commerce.

In a press release, Marcus Lemonis, executive chairman of Bed Bath & Beyond, explained that California’s regulatory environment poses too many barriers for a business to be profitable in the state. The company pointed to the state’s high taxes, fees, and business regulations as key reasons for the decision.

"This decision isn't about politics—it's about reality," Lemonis said. "California has created one of the most overregulated, expensive, and risky environments for businesses in America. It's a system that makes it harder to employ people, harder to keep doors open, and harder to deliver value to customers."

"At Bed Bath & Beyond, our responsibility is to our customers and our shareholders. We will not participate in a system that undermines both," Lemonis added.

The company’s website, BedBathandBeyond.com, will continue to serve California residents, offering 24- to 48-hour delivery and same-day service in some areas.

Beyond, Inc. acquired Bed Bath & Beyond after the retailer filed for bankruptcy two years ago. Since then, the company has reported strong financial results, posting $282 million in revenue in 2025 and surpassing forecasts, according to Investing.com.

The decision not to expand into California mirrors the sentiment of other businesses in recent years. In-N-Out Burger leadership has also criticized the state’s business environment, with the chain’s president recently announcing she was moving her family to Tennessee, citing the difficulties of raising a family and operating a business in California.