Green’s Dictionary of Slang

bag lady n.

1. [1960s+] (orig. US) a female derelict, usu. sleeping rough or in shelters, often an alcoholic or meths drinker, whose most cherished possessions are the numbers of (to an outsider) junk-filled shopping bags, which festoon her as she walks and which never leave her side [abbr. shopping bag lady. Coined for such women living on the streets of New York City].

2. [2000s] (S.Afr. gay) an ugly drag queen.