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One of Northern Europe's largest textile company, Varner Retail, which operates a chain of fashion shops, has signed a contract with German logistics giant DB Schenker to handle its store distribution in Norway.

The value of the contract, which runs through to 2015, is estimated at EUR12 million (US$16.6 million).

"We conducted a thorough process to find the best transportation provider in Norway and DB Schenker delivered the best and most innovative solution," said Varner logistics chief Anders Eriksson.

Mr Eriksson said DB Schenker already had a large proportion of their transport for many years. "Now we put everything in the DB Schenker basket to get the synergies of greater operational solutions."

The project will contribute to a higher utilisation of DB Schenker's Alnabru hub in Oslo and its network throughout Norway. said Schenker sales chief Bjorn Tore Elstad.

"I am very happy that Varner Group focuses 100 per cent on us as their supplier. This means that we increase our volumes at Varner Group from 1.2 million parcels to 3.5 million parcels."

Varner Group represents chains BikBok, Carlings, Cubus, Dressmann, Dressmann XL, Vivikes, Solo, Volt, Wearhouse, Wow and Urban. It imports goods from the Far East, China and several other countries to its 689 stores in Norway. Apart from Norway, the group also has stores in Sweden, Finland, Denmark, Germany, Iceland and Poland.