Bed Bath & Beyond’s Executive Chairman Marcus Lemonis announced Wednesday that the company will not open or operate retail stores in California, citing the state’s “overregulated, expensive, and risky” business environment.
“California has created one of the most overregulated, expensive, and risky environments for businesses in America,” Lemonis said in a statement. “It’s a system that makes it harder to employ people, harder to keep doors open, and harder to deliver value to customers.”
“The result? Higher taxes, higher fees, higher wages that many businesses simply cannot sustain, and endless regulations that strangle growth. Even when the state announces a budget surplus, it’s built on the backs of ordinary citizens who are paying too much and businesses who are squeezed until they break.”
Online-First Strategy for California Customers
Though it is exiting brick-and-mortar retail in the state, Lemonis stressed that the company will continue to serve California customers. Bed Bath & Beyond will expand its online delivery model, offering 24- to 48-hour shipping — and in many cases, same-day service — through BedBathandBeyond.com.
This approach, he said, avoids “the inflated costs created by an unsustainable model” while