Tell them you want to watch. If they won't let you, make sure you have a statement from the store manager that you could not get it in the box. Remind the manager that his store is liable if somenthing happens. You also might remind the manager that the bike is preassembled in the box already and his store is liable for the unknown worker that put it in the box.
You could head on down the road to another Target it seems like most of them list the bike in stock. 9-10 stores within 30 miles of Santa Cruz have it listed as in stock.
PS My neighbor has the Jag with an 80 on it. He rides it everyday to work. It used to be 15 miles to work, now not so far maybe a mile. He has welded it a few times, but the line on it are cool.
PPS I bet this is gone Schwinn point Beach 7 spped cruiser