The cash part didn't raise any flags for me, I don't know anyone who used plastic for groceries. Checks, maybe, but not cards (except the welfare ones).
I do, however, doubt the OP can tell the quality of suits and $800 must seem like a fortune. I think the tone was exaggerated to support the OPs own POV.
BTW, I have thrown in a buck or two when behind someone who mis-estimated the amount they were picking up, and once had someone do it for me.