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.

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.

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

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

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.

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.

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.