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.