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    Lunds Inks Deal for Downtown St. Paul Store

    The upscale retailer said it is planning to build a 30,000-square-foot supermarket on the main floor of an urban development project.

    Lund Food Holdings plans to build a full-service Lunds supermarket at the intersection of 10th and Robert Sts. in downtown St. Paul.

    The Edina, Minn.-based Lunds signed a long-term lease agreement with Penfield Development to open a 30,000-square-foot supermarket on the main level of the Penfield, a full city-block sized project that is also expected to include an upscale apartment complex and a Hyatt Place Hotel.

    Similar to the successful Lunds in northeast Minneapolis and a future store in downtown Minneapolis, plans for the downtown Lund's St. Paul location include an urban-style, single-level supermarket with a heavy emphasis on fresh foods and premium prepared meals.

    Construction for the new Lunds' location is slated to begin in the fall of 2009.

    The Edina-based Lund Food Holdings operates 10 Lunds and 11 Byerly's supermarkets in the Twin Cities and surrounding area and an online grocer Web site www.LundsandByerlys.com.

    In other news, discount grocer Aldi is also planning to open a store on St. Paul's East Side next year at Ruth St. and Suburban Ave. The store, scheduled to open in fall 2009 at the northwest corner of the intersection, will be next door to a Byerly's location and in close proximity to a warehouse-style Cub Foods location. A spokeswoman for the Batavia, Ill.-based chain said Aldi is especially fond of opening new stores in very competitive areas, which typically tends to be a very successful strategy.

    The discount grocery chain has 20 current Twin Cities locations.

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