Bed Bath & Beyond says it won’t open stores in – Business News
Bed Bath & Beyond on Wednesday mentioned it won’t open stores or operate in California as it issued a scathing rebuke of the state’s intense lefty insurance policies.
Marcus Lemonis, government chairman of Bed Bath & Beyond, mentioned the choice “isn’t about politics – it’s about reality.”
“California has created one of the most overregulated, expensive and risky environments for businesses in America,” he mentioned in a press release.
Bed Bath & Beyond mentioned it won’t open stores or operate in California. REUTERS
“The result? Higher taxes, higher fees, higher wages that many businesses simply cannot sustain, and endless regulations that strangle growth.”
The beleaguered chain has launched a return to retail after submitting for chapter and shutting lots of of stores simply two years in the past.
It cited a dedication to shareholders and “common sense” business practices as its reasoning for offering solely e-commerce and supply companies in California.
Lemonis argued that California’s strict rules would drive Bed Bath & Beyond to inflate costs in brick-and-mortar stores and make it inconceivable for them to guarantee long-term employment.
In specific, he took purpose at intense employee protections like California’s minimal wage hike – as high as $20 for the fast-food industry – arguing that companies can’t deal with the prices.
A spokesperson for California Gov. Gavin Newsom clapped back: “Like most Americans, we thought Bed Bath & Beyond no longer existed.”
California Gov. Gavin Newsom talking at an occasion final week. REUTERS
“We wish them well in their efforts to become relevant again as they try to open a second store,” the spokesperson informed The Post in a assertion.
The model, which is now owned by Beyond Inc., opened its first new location earlier this month in Nashville.
Earlier this yr, Kirkland’s Inc. finalized a $25 million investment from Beyond, which additionally owns Overstock, Zulily and BuyBuy Baby.
As half of the deal, Kirkland’s has change into the unique brick-and-mortar operator and licensee for new, smaller-format Bed Bath & Beyond stores.
Shoppers browse in a Bed Bath & Beyond store in early 2023. John Roca
The company plans to open 5 of these 15,000-square-foot “neighborhood” stores this yr.
“The key to retail is efficiency in assortment, space management, sourcing and merchandising, all while recognizing that smaller, tighter footprints with significantly lower fixed cost models is a winning recipe,” Lemonis mentioned final yr when the partnership was introduced.
If the pilot program goes nicely, it might result in a broader bodily store rollout, the company mentioned.
Home decor chain Kirkland’s operates more than 300 of its own stores throughout more than 30 states.
