I think Target probably mimics anything that is popular and they think will sell, not just Coach. This bag resembles a Julianne, but certainly would never be mistaken for a real one.
But really, in this economy, I'm sure there are a lot of people who have lost jobs, or are threatened by foreclosure, or are just having financial hardships, and can't afford anything more expensive. And truthfully, there are tons of people shopping at Target that have no idea what a Julianne is, but like the style of the bag.
I feel lucky to have my Coach bags. Some people don't have the love of purses that most of us do, or they don't have the resources.