What a bitch that not cool.

Okay, 1- That woman is a bitch! and 2- That store is absolutely terrible! They didn't handle that properly at all. They could (and should) have asked for receipts from both of you to prove who paid for what, and/or asked your cashier if they remembered you paying for that item or saw what happened with the other lady. And if all else fails there's the security tapes. At my store they would have done that, figured out who the real thief was, dealt with her, and given you that item back free of charge, and possibly a gift card to our store, to apologize for the trouble and inconvenience you went through. There's no way they would have just picked a side and kicked an innocent customer out, that's the fastest way to lose business and get a bad reputation in the process. I would never shop there again if I were you, OP, and tell your friends to do the same!

Betty White's Off Their Rockers!

OMG the elderly strikes again... Yes, I would suggest to tell security to check the cameras.

Cameras, receipt, this shouldnt be difficult for you to prove your case

Write down exactly what happened, including the date, time, sequence of events, a description of the woman in question, and any names you may have caught of the employees involved. Take that statement, and your receipt, back to the store (or perhaps call them) and speak to the manager. File a formal complaint and demand that an in-store investigation take place. They need to review all security footage of the day/time of this situation, in the area of the store where this occurred, and find your proof. Then you need a refund/replacement at the very least, though preferably they will suck up to you and also give you a gift card or in-store credit (though I'd be uncertain whether I could even tolerate shopping there again, personally) for the trouble you've had to put up with. Hopefully this leads to that woman being charged for petty theft (I'm not a police officer or an attorney, so please forgive me if I've named the wrong charge for this crime) so that she's held responsible for what she did. If nothing else, it might just wipe that smirk off her face. I'm sorry this happened to you, OP.

Hello your receipt

Reading dumb FMLs sometimes makes me angry. RECEIPT, op

And why didnt you tell them to check the cameras?! Or better yet demand it, i wouldnt let anyone do that to me

Actually most camera footage in stores is stored on the server in the store. All digital and very quick for a manager to verify the theft. Hope this problem gets cleared up OP.