On August 20, 2025, Marcus Lemonis, the Executive Chairman of Bed Bath & Beyond, made a significant announcement regarding the company’s operations in California. He stated that the company would not open any retail stores in the state. “This decision isn’t about politics… it’s about reality,” Lemonis asserted. His rationale highlighted the burdensome environment for businesses in California. Rising taxes, unsustainable wage mandates, and endless fees contribute to a landscape where growth is stifled.
Lemonis painted a bleak picture, explaining how these regulatory obstacles damage not only businesses but also the very citizens who rely on them. He noted that California’s financial successes often come “on the backs of ordinary citizens” who already bear high costs. The crime wave, particularly rampant shoplifting, compounds these issues, leaving retailers “ravaged of their merchandise on a consistent basis.” Despite the reinstatement of felony penalties for shoplifting in 2024, Lemonis argued that the overall enforcement climate is still failing, further dissuading brick-and-mortar operations.
The impact of shoplifting extends beyond Bed Bath & Beyond. Other retailers, like Target, have also closed numerous stores in California, citing similar issues related to theft and employee safety. In 2024 alone, California led the nation with over 50,000 reported shoplifting incidents, reflecting a troubling trend that has escalated since Proposition 47 reduced penalties for certain thefts. As business costs surge and law enforcement struggles, the retail sector finds itself increasingly under siege.
California’s labor costs are another deterrent. The minimum wage rose to $16.50 in 2025, while fast food workers earn even more. Cities are implementing even higher rates, creating an increasingly hostile environment for employers. The result is a decline in employment, particularly among less-educated Californians. Cyber insurance and other management costs have also skyrocketed, burdening the industry further.
This tumultuous situation has prompted other major corporations to reassess their presence in the state. Chevron, after 145 years, has decided to relocate to Texas, highlighting the unfavorable policies that hurt both consumers and investors. Likewise, high-profile figures like Elon Musk have criticized California’s business policies, suggesting they inhibit growth and opportunity.
In summary, businesses are feeling the pressure in California, wary of the costs and regulations that drive them away. As companies like Bed Bath & Beyond reassess their operations, the state may soon face the consequences of its economic decisions, leading to a shrinking tax base and fewer job opportunities for residents. The need for change is clear… but whether that change will come remains to be seen.
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