Why Won't Bed Bath & Beyond Return to California? Newsom: 'Good Luck Being Relevant Again'

A high-stakes retail showdown over regulation and relevancy just took centre stage.

Bed Bath & Beyond is staging a comeback, but not in California. The revived retailer, now operating under Beyond Inc., declared on 20 August 2025 that it will not reopen physical stores in the Golden State, citing regulatory and cost obstacles.

In response, California Governor Gavin Newsom's office delivered a sharp rebuke, questioning the brand's relevance. This unfolding drama spotlights tensions between retail revival and regional business climate.

California Declares Itself Too Costly

Marcus Lemonis, executive chairman of the revived Bed Bath & Beyond, warned bluntly: California's environment is 'overregulated, expensive, and risky', and that the state's high taxes, fees and wages make sustainable business operations nearly impossible. He emphasised that such conditions restrict hiring, keep physical stores from remaining open, and drive up prices for customers.

Lemonis insisted the decision is 'not about politics, it's about reality', pointing to the state's minimum wage, up to $20 in some sectors, and its labyrinth of regulations. He explained that the company's revived model will focus on e-commerce and delivery for California shoppers, bypassing brick-and-mortar entirely.

Newsom Snark: 'Good Luck Being Relevant Again'

California didn't hold back. Governor Newsom's spokesperson responded with biting sarcasm: 'Like most Americans, we thought Bed Bath & Beyond no longer existed', before adding, 'We wish them well in their efforts to become relevant again as they try to open a second store'.

Revival Strategy: Small Footprint, Big Ambition

Bed Bath & Beyond's new era is being steered by Beyond Inc., which acquired the brand's intellectual property following the 2023 bankruptcy and liquidation that closed all remaining stores.

The retailer has already opened its first 'Bed Bath & Beyond Home' store in Nashville and plans to open a total of five compact, 1,394 m² 'neighbourhood' stores this year, under a £20 million ($25 million) investment with Kirkland (also known as Brand House Collective).

If successful, up to 75 stores could open across the US by 2026, just not in California.

Cost-heavy State, Cost-conscious Retailer

Lemonis reiterated that the retail model must be efficient in assortment, space use, sourcing and merchandising, noting that smaller footprints and lower fixed costs are key to profitability. He framed the choice to skip California as a stand for 'common sense' in business, ensuring fair prices for customers, stable jobs for employees and viable operations for shareholders.

What Californians Should Know

California shoppers aren't being abandoned entirely. The retailer confirmed it will continue to serve customers via its online platform, BedBathandBeyond.com.

This means delivery remains an option, but the in-person retail experience stays off the table, at least for now.

Final Word: Caution or Exit?

As Bed Bath & Beyond attempts to stage its retail comeback, this stand-off raises important questions. Is California's regulatory and wage framework disadvantaging businesses, or is the company simply opting for a leaner, more flexible model better suited to today's economy?

Either way, the headlines — and headlines like this one — will ensure the debate continues to resonate with retailers, consumers and policymakers alike.