Marcus Lemonis, CEO of Bed Bath & Beyond, announced the company will halt plans to open new retail stores in California, pointing to a harsh mix of taxes, labor costs, and regulations that he says make the state inhospitable to business growth.
“Not Politics — Reality”
In a statement this week, Lemonis emphasized that the move is driven by economics, not partisanship.
“California has created one of the most overregulated, expensive, and risky environments for businesses in America,” he said. “It’s harder to employ people, harder to keep doors open, and harder to deliver value to customers.”
Lemonis cited rising taxes, mandated wage hikes, and regulatory burdens as key obstacles preventing companies from remaining competitive. He also criticized the state’s budget policies, noting that surpluses are “built on the backs of citizens and businesses already paying too much.”
Shifting to an Online-Only Strategy
Though rejecting physical expansion, Bed Bath & Beyond plans to continue serving California shoppers through its e-commerce platform. Lemonis said the company is doubling down on fast delivery, with most orders arriving within 24 to 48 hours — and some even the same day.
“At Bed Bath & Beyond, our responsibility is to customers and shareholders,” he explained. “We will not participate in a system that undermines both. Californians will still get the products they want online, without the inflated costs of operating brick-and-mortar stores in an unsustainable environment.”
A Larger Statement on California’s Business Climate
Lemonis framed the decision as part of a broader conversation about the state’s future for businesses.
“Businesses deserve the chance to succeed. Employees deserve stable jobs. And customers deserve fair prices,” he said. “California’s system delivers the opposite.”
The shift reflects a growing trend among retailers to rethink physical investments in California while expanding digital operations to stay competitive.