Bed Bath & Beyond is reversing a prior decision to avoid California, committing to reopen stores across the state as part of a broader national expansion. The home goods retailer, now paired with The Container Store in a combined store format, plans 12 California locations within a 98-store rollout across the United States.
The new The Container Store + Bed Bath & Beyond concept will bring brick-and-mortar operations back to several major California markets. Announced locations include Los Angeles, Corte Madera, Palo Alto, Sacramento, San Diego, El Segundo, San Francisco, San Jose, San Mateo, Costa Mesa, Walnut Creek and Woodland Hills. The retailer is using this multi-market strategy to re-establish its in-person presence after an extended period focused on e-commerce.
This move marks a notable shift from comments made last year by Bed Bath executive chairman and CEO Marcus Lemonis, who had stated the company would not operate physical stores in California. At that time, he cited concerns about what he viewed as a heavily regulated and higher-risk operating environment in the state. The current expansion indicates a change in approach, with the company now willing to re-enter the California retail landscape despite those earlier concerns.
Bed Bath & Beyond has undergone a significant transition over the past several years. The company filed for bankruptcy in 2023 and subsequently liquidated its store portfolio, exiting its previous brick-and-mortar footprint. Following liquidation, the brand continued to operate as an online-only merchant for roughly two years before beginning to re-open physical stores in 2025. The latest rollout of combined-format stores with The Container Store continues that post-bankruptcy repositioning.
California officials framed the retailer’s return as a vote of confidence in the state’s economy. In a statement responding to the company’s announcement, California Governor Gavin Newsom highlighted the state’s economic performance and potential for retailers. He said there is “a lot of profit to be made in California” and welcomed Bed Bath & Beyond’s decision to open stores in the state, characterizing it as the company taking advantage of what he described as the world’s fastest-growing economy.
For landlords and retail stakeholders, the decision by Bed Bath & Beyond and The Container Store to commit to 12 locations signals renewed interest from a national retailer in California’s shopping center and high-street corridors. While specific store sizes, lease terms and opening timelines were not disclosed, the multi-store rollout underscores the importance of California markets in the brand’s broader physical-store strategy following its restructuring.
