Bed Bath & Beyond skips California expansion citing strict regulations

Bed Bath & Beyond won’t open California stores, citing high costs and regulations, shifting focus to e-commerce.

Beyond, Inc, the parent company of Bed Bath & Beyond, announced it will not open physical retail stores in California as part of its 2025 expansion strategy.

Instead, the retailer will serve customers in the state exclusively through its e-commerce platform, BedBathandBeyond.com.

Executive Chairman Marcus Lemonis cited California’s challenging regulatory climate as the primary reason behind the decision. High taxes, labor laws, environmental mandates, and operational costs were identified as barriers to profitability.

“At Bed Bath & Beyond, our responsibility is to our customers and our shareholders. We will not participate in a system that undermines both,” Lemonis said in a company statement.

Although the retailer is avoiding brick-and-mortar stores in California, it plans to provide robust online service with 24–48 hour delivery options and same-day delivery available in select regions.

Beyond, Inc., headquartered in Murray, Utah, also owns Overstock and buybuy BABY. The company acquired the Bed Bath & Beyond brand following its bankruptcy in 2023. The move underscores a broader trend in retail, as companies increasingly weigh state-specific strategies and shift investments toward digital channels amid changing consumer habits.

In financial updates, Beyond, Inc. reported second-quarter 2025 earnings per share of $0.22, beating expectations of a $0.35 loss. Revenue reached $282 million, surpassing forecasts of $261.38 million. Despite the strong quarter, Needham maintained a Hold rating, noting ongoing challenges with revenue trajectory and profitability.

To strengthen its brand identity, Beyond announced plans to rebrand as Bed Bath & Beyond, Inc. effective August 29, 2025, and will begin trading under the ticker BBBY.