The chief executive officer of the retailer Bed Bath & Beyond has sharply criticized California’s regulatory climate, announcing that the company will not expand its brick-and-mortar retail presence in the state. According to CEO Marcus Lemonis, the decision reflects concerns about the cost and complexity of operating in California’s business environment.
In a public statement, Lemonis said the company would not open or operate retail stores in California, describing the move as a practical business decision rather than a political statement. He argued that the state has developed what he views as one of the most challenging environments for businesses in the United States.
“This decision isn’t about politics — it’s about reality,” Lemonis said. “California has created one of the most overregulated, expensive, and risky environments for businesses in America. It’s a system that makes it harder to employ people, harder to keep doors open, and harder to deliver value to customers.”
Lemonis pointed to a combination of taxes, fees, wage requirements, and regulatory mandates that he believes place significant pressure on companies operating in the state. According to him, these factors make it difficult for many businesses to maintain sustainable operations while continuing to offer competitive prices to consumers.
He also criticized what he described as a structural imbalance in the state’s fiscal system, suggesting that even reported budget surpluses ultimately rely on higher costs for residents and businesses.
Despite the decision not to establish retail locations in California, Lemonis said the company will continue serving customers in the state through alternative channels. Bed Bath & Beyond plans to expand its delivery-focused strategy, offering 24- to 48-hour shipping and, in some cases, same-day service.
Lemonis said the approach allows the company to continue meeting demand from California customers while avoiding operational costs associated with maintaining physical stores in the state.
