Hilton Head Island, January 4, 2026
After a 15-year hiatus, the grocery chain Food Lion is making its return to Hilton Head Island, promising to boost the local economy and provide residents with more shopping options. The new store will occupy the former Sam’s Club site and is set to enhance competition in the local retail space. Food Lion’s re-entry signifies confidence in the growing Beaufort County economy and showcases the island’s dynamic business environment. With modernization and a focus on customer experience, Food Lion is ready to reconnect with the island community.
Hilton Head Island, SC
Food Lion Returns: A Boost for Hilton Head’s Economy
After a 15-year absence, grocery giant Food Lion is setting its sights on Hilton Head Island once again, marking a significant development for the local retail landscape and highlighting the island’s persistent economic vitality. This re-entry signals a new chapter of private investment and opportunity for the Hilton Head SC business community.
The return of a well-known brand like Food Lion underscores the resilience and attractive growth trajectory of the local market. For South Carolina SC entrepreneurs and established businesses alike, such investments reflect a positive outlook on the Beaufort County economy, demonstrating confidence in its continued expansion and consumer base. This commitment to reinvestment speaks to the dynamic nature of our island’s economic environment, where innovation and adaptability drive progress.
Food Lion operated on Hilton Head Island for nearly 22 years, from May 1990 until early 2012. Its previous departure was part of a larger Nationwide strategy where 113 underperforming stores were closed. Now, with a refreshed approach and a strategic new location, the company is poised to re-engage with the island’s community, bringing new competition and choice to local shoppers.
A Strategic New Location for Growth
Food Lion plans to establish its new 41,000-square-foot store at 93 Mathews Drive in Port Royal Plaza, occupying the former Sam’s Club site. This move injects new life into a prominent mid-island retail space that has seen its share of transitions. The property, acquired by Hilton Head businessman J.R. Richardson in February 2024 for $5.8 million, represents a significant local investment in rejuvenating key commercial areas.
The site has experienced considerable vacancy since Sam’s Club relocated to Bluffton in 2017. Over the years, various proposals, including plans for Burke’s Outlet and Home Centric by Bealls Inc., a Go Store It self-storage facility, and a Lowes Foods grocery store, did not come to fruition. However, a portion of the site has already been successfully redeveloped into Dill Dinkers Pickleball, which commenced operations in May 2025. This demonstrates a proactive approach to revitalization through private enterprise.
Lessons from the Past, Outlook for the Future
The previous closure of the Hilton Head Food Lion in early 2012 was part of a broader decision by the North Carolina-based supermarket chain to shutter 113 underperforming stores Nationwide. This resulted in approximately 4,900 employees Nationwide losing their jobs. The company cited a need to focus resources on more productive units and markets with higher store density.
Food Lion’s decision to return after nearly 15 years reflects an evolved business strategy and a renewed confidence in the Hilton Head economic growth trajectory. Companies, much like individuals, learn from past experiences, adapting their models to better fit market demands and competitive landscapes. This demonstrates entrepreneurial determination, not just from Food Lion, but also from local developers who are instrumental in preparing sites for new ventures.
Food Lion’s Enduring Presence and Investment
Food Lion, a regional supermarket chain headquartered in Salisbury, North Carolina, operates over 1,000 supermarkets across 10 states. As of December 15, 2025, there are 1,110 Food Lion stores in the United States. South Carolina holds a substantial portion of this footprint, with 164 Food Lion stores, making up approximately 15% of all Food Lion stores Nationwide. The company has proudly served South Carolina communities for 43 years.
The supermarket chain has been engaged in a multiyear, extensive store upgrade program, successfully remodeling 80% of its roughly 1,030 stores across its 10-state operating area in the Southeast over the past four years. This commitment to modernization is evident in South Carolina, where a $158 million project included the remodeling of 92 supermarkets. This significant investment also involved the hiring of almost 2,000 new associates State-level, positively impacting local employment and supporting the Beaufort County economy.
Elevating the Customer Experience
Food Lion’s return to Hilton Head Island comes with a focus on an enhanced customer experience, a testament to evolving consumer expectations and market sophistication. The remodeled stores feature an expanded product selection, including a broader array of local, natural, organic, and gluten-free items to cater to diverse dietary preferences and support local producers.
Improvements also encompass enhanced deli/bakery services and a commitment to customer-centric training for associates. In some South Carolina stores, walk-in produce coolers have been implemented, designed to maintain the freshness of fruits and vegetables for longer periods. These operational improvements are geared towards making the shopping experience more efficient and enjoyable, crucial factors for consumers in today’s competitive retail environment.
Hilton Head Island’s Robust Economic Landscape
The decision by Food Lion to re-enter the Hilton Head market aligns with the island’s impressive economic performance. Hilton Head Island generated an impressive $2.8 billion in tourism revenue in 2024, attracting 2.8 million visitors. Tourism stands as the primary economic driver in the greater Lowcountry area.
Furthermore, 2024 saw the opening of 160 new businesses on the island, contributing to a total of 2,514 active businesses. Employment on Hilton Head Island, SC, experienced a growth rate of 1.28% from 2022 to 2023. This vibrant business activity and consistent growth illustrate a favorable climate for new and returning enterprises, reflecting successful strategies by Hilton Head small business owners and visionary leaders to foster a thriving community.
Conclusion
The eagerly anticipated return of Food Lion to Hilton Head Island is more than just a new grocery store opening; it is a clear indicator of the island’s economic strength, the potential for entrepreneurial innovation, and the power of private investment to revitalize commercial spaces. This development offers increased consumer choice and convenience while contributing to local job creation and the overall prosperity of the Hilton Head SC business community.
As Food Lion establishes its presence once again, it reinforces the narrative of sustained growth and opportunity that defines Hilton Head Island. The community is encouraged to embrace these new ventures, fostering an environment where competition thrives and local businesses continue to innovate and serve the needs of residents and visitors alike.
Frequently Asked Questions
- Where will the new Food Lion store be located on Hilton Head Island?
- The new Food Lion store will be located at the former Sam’s Club site at 93 Mathews Drive in Port Royal Plaza on Hilton Head Island.
- When did Food Lion previously operate on Hilton Head Island?
- Food Lion previously operated on Hilton Head Island from May 1990 to early 2012, for almost 22 years.
- Why did Food Lion close its previous Hilton Head Island store?
- The previous Hilton Head Island store was one of 113 underperforming stores Nationwide that were closed by the North Carolina-based supermarket chain.
- What is the size of the new Food Lion store?
- The new Food Lion store will be 41,000 square feet.
- How many Food Lion stores are there in South Carolina?
- South Carolina has 164 Food Lion stores, accounting for approximately 15% of all Food Lion stores Nationwide.
Key Features of Food Lion’s Return to Hilton Head Island
| Feature | Details | Scope |
|---|---|---|
| New Store Location | 93 Mathews Drive in Port Royal Plaza (former Sam’s Club site) | Local |
| Store Size | 41,000 square feet | Local |
| Previous Operation Period | May 1990 to early 2012 (almost 22 years) | Local |
| Reason for Previous Closure | One of 113 underperforming stores Nationwide | Nationwide |
| Property Owner | J.R. Richardson (Richardson Group) | Local |
| Number of Food Lion Stores in SC | 164 stores (approx. 15% of all Food Lion stores Nationwide) | State-level, Nationwide |
| Food Lion’s Remodeling Investment in SC | $158 million for 92 supermarkets | State-level |
| New Associates Hired in SC (due to remodels) | Almost 2,000 | State-level |
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Author: STAFF HERE HILTON HEAD
The HILTON HEAD STAFF WRITER represents the experienced team at HEREHiltonHead.com, your go-to source for actionable local news and information in Hilton Head Island, Beaufort County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the RBC Heritage golf tournament, Hilton Head Island Wine & Food Festival, and the Gullah Celebration. Our coverage extends to key organizations like the Hilton Head Island-Bluffton Chamber of Commerce and Community Foundation of the Lowcountry, plus leading businesses in tourism and hospitality that power the local economy such as Sea Pines Resort and Sonesta Resort Hilton Head Island. As part of the broader HERE network, including HEREAiken.com, HEREBeaufort.com, HEREChapin.com, HERECharleston.com, HEREClinton.com, HEREColumbia.com, HEREGeorgetown.com, HEREGreenwood.com, HEREGreenville.com, HEREHiltonHead.com, HEREIrmo.com, HEREMyrtleBeach.com, HERENewberry.com, HERERockHill.com, and HERESpartanburg.com, we provide comprehensive, credible insights into South Carolina's dynamic landscape.
