That Costco Rumor

The speculation about a Costco being built near Sun City Hilton Head (SCHH) has circulated for almost a decade, but there is still no evidence that the warehouse chain is actually coming to the Hardeeville/Okatie area.

How the rumor began

• Horne Properties proposed the 180‑acre Okatie Crossing development at U.S. 278 and S.C. 170 in 2016. Early site plans for the shopping center showed big‑box retailers such as Costco, Target and Kohl’s, and the Hardeeville city council approved a payment‑in‑lieu‑of‑taxes agreement to help fund the project. However, the developer would not confirm any tenant commitments.
• By mid‑2016, the project still had not broken ground. Developer Doug Horne told the Island Packet he was stuck in a “Catch‑22” — he needed commitments from anchor tenants to finance a new road across the property, but retailers were unwilling to commit before the road existed. He said he hoped to start building in 2017 but refused to confirm any tenants.
• Local residents kept hoping for a Costco because a 2015 survey identified it as the No. 1 desired retailer in Beaufort County. As of 2016, the site plan still showed Costco, but there was no contract.

What happened later

• Over the following years the Okatie Crossing project remained stalled. According to Island Packet reporting in 2025, the lot in Okatie Crossing that was once considered for a Costco “fell through” after 2019 because of cost issues. Michael Patterson of Horne Properties told the paper that the property is “not currently under contract and nothing is imminent”.
• A separate 2025 report noted that Costco’s latest list of new U.S. warehouses includes locations such as Brentwood (CA), Genesee County (MI), Highland (CA), Prosper (TX), Sharon (MA) and Weatherford (TX), but there is no Lowcountry location. Residents of Beaufort County were “left disappointed” because the company explicitly announced there would be no new warehouse openings in the region by early 2025. The story also recalled that the Okatie Crossing deal hit an impasse over costs in 2019.
• Around the same time, speculation about a Trader Joe’s at the same site also circulated. When reporters investigated, Horne Properties and Hardeeville’s city manager both confirmed that the rumor was false and that the lot remains available. They reminded readers that the earlier Costco proposal collapsed due to cost constraints.

Current state of Costco expansion in South Carolina

• Costco continues to expand elsewhere in the state. The company is opening a new warehouse in Indian Land (Lancaster County) near the North Carolina border. According to a September 2025 USA TODAY Network report, the Indian Land store at 8800 Charlotte Highway is scheduled to open on October 30, 2025. Once that store opens, South Carolina will have seven Costcos: Spartanburg, Greenville, Mount Pleasant, Columbia, Charleston, Myrtle Beach and Indian Land. No location in Hardeeville or Beaufort County is on the current expansion list.

Bottom line

The rumor about Costco coming to SCHH stems from early, unfinalized site plans for the Okatie Crossing development. Those plans never resulted in a signed lease, and the developer acknowledges that the proposed Costco fell through due to cost issues. Costco has since announced new stores elsewhere, including Indian Land, but it has no confirmed plans to build near Sun City Hilton Head. Until a formal announcement is made by Costco or local authorities, the Okatie/Hardeeville Costco should be considered a rumor rather than an imminent development.