For months, speculation has swirled about why several of America’s top retailers quietly steer clear of California.
Now, a bold announcement has confirmed what many suspected: the state’s progressive policies are pushing businesses away. Executives have long grumbled behind the scenes about surging expenses and stifling red tape—but rarely has a CEO spoken this openly and defiantly.
Marcus Lemonis, the head of Bed Bath & Beyond, delivered a scathing critique of California’s economic environment, making it clear his company won’t be planting roots there. “We will not expand or operate in California,” Lemonis said.
“This isn’t about politics—it’s about facts. The state has become one of the most overregulated, expensive, and unpredictable places for companies. Hiring is harder, staying profitable is harder, and delivering value to customers is harder.”
He stressed that crushing taxes, inflated fees, labor costs, and endless regulations make survival difficult for many businesses. “Even when the government brags about a budget surplus, it comes at the expense of everyday workers and companies being squeezed past their limits,” he added.
Rather than open new stores, Bed Bath & Beyond plans to serve Californians with rapid online fulfillment, offering 24–48-hour delivery and, in some areas, same-day shipping through BedBathandBeyond.com. Lemonis said this strategy ensures customers can access the same products without the extra costs tied to the state’s policies.
“We’re making a statement because businesses deserve room to grow, employees deserve security, and customers deserve affordability. California offers the opposite,” he concluded.
The announcement may create political headaches for Gov. Gavin Newsom, who is widely seen as a 2028 Democratic presidential contender.
It also comes amid escalating friction between his administration and the Trump-aligned GOP, especially over immigration and sanctuary laws. Recently, Border Patrol agents showed up at Newsom’s Los Angeles rally, branded “Liberation Day,” where at least one person was detained.
Border Patrol Chief Gregory Bovino told Fox 11, “We’re here to keep Los Angeles safe. Since politicians won’t act, we’re stepping in.” When pressed for a message to Newsom, Bovino responded, “We’re not leaving. He can count on that.”
Newsom’s office fired back in a heated all-caps statement to Fox News Digital: “WE WILL NOT BE BULLIED BY WEAK DONALD TRUMP, THE CRIMINAL…”
Conclusion
This showdown underscores the widening rift between California’s progressive leadership and corporate leaders who feel strangled by its policies. Bed Bath & Beyond’s refusal to expand into the state stands as both a symbolic rejection of Newsom’s economic playbook and a warning sign about California’s future business climate.
At the same time, the standoff between federal immigration authorities and state officials injects fresh political volatility, setting up clashes that could shape both California’s economy and the national political stage heading into 2028.