Kowalski's has opened its new 48,000-sf grocery store inthe Woodbury area near the intersection of Valley Creek Roadand Radio Drive. Although it's by far Kowalski'slargest store, it is not as large as Byerly's andLunds upscale grocery stores, which range up to 90,000square feet in size, said Mike Scott, a retail brokerwith United Properties.

The Kowalski's has tried to bring a European feel to theirnew store, with its windows and vines, bright openinterior, wide aisles and small shops scattered alongthe perimeter.``It sets a new tone for upscale grocery stores,''says Jean Kinsey, director of the University of Minnesota'sRetail Food Industry Center.The success of an upscale grocery retailer depends onthe right location, good service and skillfuloperators, says Chicago-based retail consultant SidDoolittle. Most experts think that Kowalski's site inthe midst of the fast-growing and prosperous Woodburycommunity is a good one, made better by the fact thatthe nearest Byerly's is a good five or more miles awayin St. Paul across I-94.

Kokwalski's entry into the upscale grocery arenabrings competition to a market which hasn't seen a lotof competition since Lunds bought Byerly's three yearsago (together, the two chains have about 20 stores inthe Twin Cities).Although it is within a mile of Cub Foods and RainbowFoods, two discount supermarkets, Kowalski's is aftera different market _ the shopper who is willing topay a little extra for a more pleasant shoppingexperience.

Among the ``vendor partners'' who lease space in thestore are Tejas Express (an offshoot of the Tejassouthwestern cuisine restaurant in Edina, Panino'sItalian grilled sandwiches and Starbucks coffee shop.Other grocery stores have also brought insideretailers who they once might have operated next to instrip malls, says Minneapolis retail consultant JimMcComb. Byerly's has banking offices, a NorthwestAirlines ticket office, and a Caribou coffee shop, forinstance, in some of its new stores.

Kowalski's brings a new twist to the mix of in-storevendors: Juut SalonSpa, a full service salon. TheWoodbury location is Juut's eighth in the Twin Cities,and salon owner David Wagoner is excited about thepossibility of luring grocery shoppers up for a haircut, facial or massage. Wagoner's customers orderahead through Kowalski's new ``e-grocery'' service,which allows customers to place their orders onlinethen have them bagged by clerks and ready for pickupfor a flat $10 fee per grocery order, said BobKowalski, who handles for marketing for the grocerystore. Kowalski's has been testing this service at itsInver Grove Heights and White Bear stores.

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Grocer Opens Fourth Area Store, Goes Upscale

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