ALL bikes are built to a price point, I don't care where you get them from. Buying from an LBS should get you proper assembly and a free tune up after 30-60-90 days depending on the store, some offer lifetime adjustments to the original owner. My LBS sells used bikes and provides a basic warranty and free tuneup and check over at the 30-60 day mark.
Walmart/Target/Kmart all sell bikes. Some of the bikes are better than others. gpsblake's being an example of one of the better ones. I have a Huffy Cranbrook that I purchased at WM as a disposable bike for use in a corrosive industrial environment. It is a serious POS, crappy welds, the rear hub self destructed in less than 2 weeks and the local WM gave me grief on replacing the wheel. I looked at the local Kmart prior to purchasing the WM Huffy. They had a similar bike, same name, same crappy welds, but it came with chrome fenders and steel rims. The WM Huffy came with painted fenders and aluminum rims...go figure. IF you know enough about bikes to be able to take a close look at the componentry, the assembly and the quality of the frame build you can get a good deal at the big box retailers. BUT you are on your own when it comes to set up and adjustments. The low end/cheap price stuff that WM sells is garbage. If you happen to get one that is put together properly and lasts more than 100 miles...you beat the odds. I am convinced that the consumer is the final quality control check on most cheap stuff. The stores figure there is going to be a certain failure rate and one of two things will happen. Either the consumer will just toss it and go get another, or if they take the trouble to bring it back, just give them another one. It is written into the overall costs.
I have not seen the bike in question, but if it is built properly it is probably a good value for the money. I also know what you mean about the lack of good used bikes. The thrift stores around here are selling beat up Next full suspension MTB's for 90% of what a new one costs.
FWIW I needed/wanted a new city bike. I made the decision to spend the money and order a 2008 Redline R530. It was around $600 but the build quality was excellent and it is fully backed by the LBS I purchased it from. Xmart carries nothing even remotely similar to that bike at any price range.
Aaron
