Bed Bath & Beyond won’t open stores in California, cites regulations

Published 20/08/2025, 15:34
Bed Bath & Beyond won’t open stores in California, cites regulations

MURRAY, Utah - Beyond, Inc. (NYSE:BYON) announced Wednesday that its Bed Bath & Beyond brand will not establish physical retail stores in California, opting instead to serve customers in the state exclusively through its e-commerce platform.

Marcus Lemonis, Executive Chairman of Bed Bath & Beyond, stated that California’s regulatory environment makes it difficult for businesses to operate profitably in the state. The company cited high taxes, fees, wages, and regulations as factors in its decision.

"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 press release statement.

The retailer plans to continue serving California customers through BedBathandBeyond.com with 24-48 hour delivery options and same-day service in some areas.

Beyond, Inc., based in Murray, Utah, owns several retail brands including Bed Bath & Beyond, Overstock, and buybuy BABY. The company acquired the Bed Bath & Beyond brand after the previous company filed for bankruptcy in 2023.

The announcement comes as retailers across the country evaluate their brick-and-mortar strategies amid changing consumer preferences and varying state regulations. Beyond, Inc. did not specify which particular California regulations or costs most influenced its decision.

The company’s approach highlights a growing trend of retailers developing state-specific strategies that balance physical presence with digital capabilities based on local market conditions.

In other recent news, Beyond Inc. reported impressive second-quarter 2025 earnings, with earnings per share reaching $0.22, significantly surpassing the anticipated loss of $0.35. The company also exceeded revenue forecasts, posting $282 million compared to the expected $261.38 million. Despite this strong performance, Needham maintained its Hold rating on Beyond Inc., indicating ongoing challenges with the company’s revenue trajectory. The firm noted that these challenges might extend Beyond’s path to profitability and limit potential benefits from operating leverage. In a strategic move, Beyond Inc. announced it will rebrand as Bed Bath & Beyond, Inc., starting August 29, 2025, and will trade under the ticker symbol BBBY. This rebranding emphasizes one of the company’s most recognizable brand assets. These developments reflect Beyond Inc.’s efforts to focus on revenue growth and profitability goals.

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