I love shopping at Kohl's anyways, and there handbag section is terrific! They have a huge amount of bags in pretty much any size,shape or color that you would want. They have a lot of cheaper bags, but also some nice ones that are actually leather, like their Sonoma line. I have a pink leather purse that I bought there about 3 years ago that I still use. It is really cute and still looks great.
The best thing about Kohl's is that they are always having great sales. You hardly ever have to buy anything there at regular price, it is always on sale. They also send out lots of coupons to their credit card holders.