Bed Bath & Beyond will not be opening locations in California anytime soon, its chairman announced on Wednesday, blaming the state’s challenging business climate.
Marcus Lemonis, chairman of Beyond, Inc. — the parent company of Bed Bath & Beyond — said that the retail giant will not open or operate any stores in the Golden State. The chairman said the decision was “not political” but a matter of “common sense” in light of California’s high costs and regulatory burdens.
“This decision isn’t about politics — it’s about reality. California has created one of the most overregulated, expensive, and risky environments for business in America,” Lemonis said in a press release. “The result? Higher taxes, higher fees, higher wages that many businesses simply cannot sustain, and endless regulations that strangle growth.” (RELATED: You Won’t Believe How Much Gavin Newsom’s Gerrymandering Gambit Will Cost Taxpayers)
“At Bed Bath & Beyond, our responsibility is to our customers and our shareholders,” he added. “We will not participate in a system that undermines both.”
Lemonis noted that Bed Bath & Beyond operates stores in nearly every other state but will serve California customers exclusively through its website.
California has had several major companies leave or scale back operations in recent years. Tesla moved its corporate headquarters to Texas in 2021, while financial services firm Charles Schwab relocated from San Francisco to North Texas.
California also experienced the nation’s largest net loss of businesses in 2023, followed by other blue states such as New York, Illinois, Maryland and Massachusetts.
In August, the owner of California’s iconic burger chain, In-N-Out, announced that she would be moving from California to Tennessee, citing the challenges of running a business and raising a family in the state.
About 56% of Californians have considered leaving the state due to the exorbitant cost of living, a 2024 Emerson College poll found.
California’s median home price climbed past $900,000 in 2024 — more than double the national average — which critics have attributed to onerous environmental regulations. Renters haven’t fared better, with the state posting some of the country’s highest median rents despite its rent control laws.
With its $16.50 per hour minimum wage and marginal income tax rate of 13.3%, California routinely ranks among the least free states in the nation.
“We’re taking a stand because it’s time for common sense. Businesses deserve a chance to succeed,” Lumenois said.
Democrat California Gov. Gavin Newsom’s office did not respond to the request for comment.
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