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For Target, other Asia and North America showed the largest gains in sourcing by country, rising 3 percent and 4.3 percent, respectively; China declined by 6.3 percent.
One retailer that has increased its sourcing from China is Gap Inc. In 2006, the company sourced 3.9 percent more goods from that country than in 2005. "It looks like Gap is moving to lower-cost sourcing, which may help protect gross margins while sales are soft," the report said.