"Staff checked the CCTV which showed a female pick up the 20-pound note from a display in the store," prosecutor Ruth Bentley said. "The manager recognized the woman, who was a regular customer."
Bailey attended a voluntary interview after the other customer realized he had lost the bill and called police.
She initially denied picking up the bill but later admitted and pleaded guilty to theft after being shown the surveillance footage.
"She didn't know who the money belonged to. People don't realize picking up something you have found amounts to a theft," mitigator Simon Dykes said. "She has been quite naive in doing so."
Bailey was ultimately given a six-month conditional discharge and forced to pay a total of 175 pounds in court costs and charges.
Chief Inspector Karen Stevenson, from Stoke South Local Policing Team, said Bailey's case should serve as a lesson for others.
"Morally, the right thing to do is hand in any found property so that the person who has lost out has every opportunity to be reunited with it. This was someone's hard-earned money and we are committed to supporting all victims in our community," she said. "We would actively encourage any member of the public who picks up money that has been dropped to be honest and do the right thing by taking all reasonable steps to try and find the owner."
