In a rare move for a major corporation, home furnishing brand Bed, Bath, and Beyond woke up on Wednesday and chose violence. In a scathing statement, the company announced it will not be opening any stores in California, explaining that the state's overregulation and tax structure make it too risky.
Instead, the massive retailer will go to online-only sales there in order to avoid "higher taxes" and "higher fees," as well as what it called "unsustainable" wages. By contrast, Bed, Bath, and Beyond will continue to operate its popular brick-and-mortar stores in nearly every other state in the country.
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.
While Gov. Gavin Newsom (D-CA) and his cronies love to brag about California's total GDP, something largely driven by its pre-existing population size, that does not testify to economic health. China has a huge GDP, but would anyone argue it's a great place to operate a business or that their system is preferable to America's markets? Right now, California is slipping further and further into debt while more and more corporations flee to find relief from the destructive policies put in place by decades of Democrat governance.
All of this was preventable. California is a textbook example of what happens when you give left-wingers total control and let their hubris run wild. Yes, long-standing industries and foundational successes that started long before the Newsom era continue to keep the state afloat, but that won't continue forever. You can, in fact, push things too far, and we've seen examples of that over recent years. For example, In-N-Out Burger, a California staple, is choosing to do its latest expansion in the Republican South, including moving its headquarters. Meanwhile, Newsom is having to get on bended knee and beg oil companies not to abandon his state, and there are a lot more companies in other sectors looking to get out as well, from healthcare to technology.
Bed, Bath, and Beyond, and these other companies pulling no punches and making these decisions represents a major shift. Corporations usually tread lightly when it comes to California because they don't want to face repercussions from the vindictive Democrats in charge, but with the cost-to-benefit ratio swinging heavily in favor of just telling the state to pound sand, times are changing.
It's sad because California is such a beautiful state with so many great people still living there. There are parts of the state that are a literal paradise, and Democrats have turned them into crime-ridden, overtaxed areas where normal people can't even afford to live because a 50-year-old starter home will cost you a million dollars. It doesn't have to be that way forever, but it will be if voters there don't change course. Unfortunately, things will probably have to get worse before they get better before that happens.
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