The Department figures have taken a dive and so Mr. Rumbold decides to convene a sales conference amongst the staff. Since the meeting is taking place after hours and off the clock, no one is very motivated to provide any solutions. If something isn't done, someone might lose their job, and that someone is clearly Mr. Lucas.

A reorganization within the store forces the staff of the gentlemen's ready-to-wear department to share their floor space with the Ladies' Department. Mrs. Slocombe, head of the Ladies, and Mr. Grainger, head of the Gents, immediately come to loggerheads over control of the center floor display. Mr. Grainger refuses to take down his trousers and put Mrs. Slocombe's underwear in its place. Undaunted, she goes over his head to Captain Peacock, and then to Mr. Rumbold.

Rumors fly when Captain Peacock gets too friendly with Mr. Rumbold's secretary at the Christmas party, and things get really out-of-hand when it seems they might have spent the night together.

A transport strike leaves the staff stranded at the store, so Young Mr. Grace offers to let them spend the night on the floor. Tents are set up, but Mr. Lucas has trouble keeping his up. A "campfire" sing along leads to talk of the last World War and the experiences some of them had.

Mr. Grainger is selected to fill in for Mr. Rumbold while he is away; the staff wonder whether they should take advantage of Mr. Grainger's good nature, only to discover to their horror that he doesn't have one when he sacks Mrs. Slocombe.

After Mrs. Slocombe starts dropping hints that it's her birthday, the staff calculate that she is 50 and plan an appropriate party.

When Mr. Grace decides to open the store early, the staff set out to sabotage the new policy.

Mr. Grainger's trousers are missing, along with the central display. The staff learns that the space was freed up for the "His & Hers" fragrance display. Mrs. Slocombe is outraged that they went her to take down her underwear and put perfume there in its place. The glamorous salesgirl causes stirrings in the trouser department. When it's discovered that free stockings and ties are given out with every scent purchase, both departments formulate a plan to oust the intruder.

When the mechanical Father Christmas proves that it can't be trusted, Mr. Grace offers a bonus for one of the staff to portray the store Santa. Meanwhile, Mr. Humphries and Mr. Lucas attempt to help Mr. Grainger prepare for a song-and-dance show at an old-folks' home.

Mr. Lucas attempts to send Miss Brahms a love letter suggesting an after-work "get it together". Confusion on who sent the letter and to whom it was intended sets the stage for a lot of misunderstanding. There's also the customers to contend with and Mr. Lucas has a devil of a time fitting them into clothing.

Mr. Humphries' background as a dance instructor is called upon when the Ladies' and Gents' Wear departments form a team to compete in the inter-store ballroom dancing competition.

After finding that Grace Brothers' fire precautions leave a lot to be desired, Mr. Harman helps out training the staff in fire preparedness and a fireman gives Mr. Humphries a lift.

Mrs. Slocombe sells her home-made perfume. After a misunderstanding, Mrs. Peacock finds Captain Peacock without his pants (perfume had spilled on them) and the ill-fated trousers in the hands of Mr. Rumbold's secretary.

When the handsome golf pro from Sports comes to the floor for a demonstration, he accidentally hits Mrs. Slocombe. She then thinks she's a little girl, wrecking havoc on the store as she cavorts around the department.

The staff perform a play on CB radio to advertise Grace Brothers. The play results in the store being swamped by truck drivers who are driven off by Mr. Humphries and Mrs. Slocombe.

Mr. Humphries is accused of stealing and his distinguished career could end in disgrace. In a trial, he is found guilty and dismissed, but Mr. Harman finds the missing money in the back of the till from which it was supposedly stolen.

When Mrs. Slocombe's cat turns up missing, she decides that only Mr. Humphries could take its place.

Bad news. Grace Brothers may be bought by the Japanese. The staff take their problems to Number Ten, where they speak with President Reagan by phone. Mrs. Thatcher gets fashion tips from Mr. Humphries.

Grace Brothers hosts a week long sales event by selling only German goods. The staff, however, find that the German customers they are getting only want British goods. Captain Peacock objects to the "uniform" he's expected to wear and Mrs. Slocombe gets into the German wines.

It's pay day at Grace Brothers and the staff realize that their money just doesn't go very far. An opportunity for a bonus arises when a customer loses a diamond and offers a £100 reward. Greed gets the better of everyone, except Mr. Grainger, and soon they're conspiring behind each others backs. Mr. Mash throws a wrench in the search after he damages a jeweled dress, causing a multitude of "diamonds" within the department.

It's Mr. Grainger's 37th anniversary at Grace Brothers and the Department hosts a celebration dinner for him. It's a time of happiness, and dread, for if he receives a cuckoo clock then it means he's to be retired.

A fuel shortage grips the country and Grace Brothers, so the stores furnaces are shut down for the day. The staff are freezing and soon develop unique ways to keep warm.

Sales are falling once again and so Mr. Rumbold calls together a "think tank", a suggestion he "borrowed" from Captain Peacock. The staff decide that a fashion show would be the answer, but when Young Mr. Grace won't cough up the dough to hire proper models, the staff are forced to put on the show themselves.

There's trouble afoot at Grace Brothers! Someone's been lifting Mrs. Slocombe's skirts and putting their hands in Mr. Grainger's drawers. Shoplifting has struck the store and Mr. Rumbold installs a store detective and a video surveillance system. It goes off track for awhile, as Mr. Rumbold turns into a voyeur and the staff act like they're on television. Ultimately, the staff decide to do in the scheme and prey on Mr. Rumbolds hypochondria to accomplish it.

The Store's redecoration plans threaten to interfere in the staffs vacations. Everyone is now expected to take the same two weeks off and there's disagreements on how to handle it. Grace Brother's Tour Group Company offers some package deals, but they are far from First Class.