Mr. Humphries begins displaying his ability to read palms and tell the future. He sees that Captain Peacock will soon be "climbing the ladder and wearing a new hat". Everyone takes this to mean a promotion, especially now that there's a vacancy on the Board of Directors and Mr. Rumbold is in line for it. Captain Peacock expects to take Mr. Rumbold's job. The department staff soon all imagine moving up.

Mr. Grainger is 5 minutes late coming back from his coffee break and this sets in motion a management scheme to monitor all breaks. The staff must sign in and sign out when they leave and return to the department. The department staff revolt and union action is taken

Captain Peacock is celebrating his 20th year at Grace Brothers, and while his request for a raise has been turned down, he has been given a key to the Executive Wash Room and the privilige of eating in the Executive Dining Room. He lords this over the department staff and Mr. Grainger decides to make some trouble.

Illnesses strike the Department, and Mr. Lucas decides to fake his to get the day off. His plan backfires as he is assigned to the Ladies Counter as a sort of "quarantine".

Naughty sayings on her underwear push Mrs. Slocombe to the brink of giving her notice, but then it's discovered that Old Mr. Grace plans to ask a member of the staff to marry him. When he calls for Mrs. Slocombe, everyone assumes she's the one.

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.

The Ladies Department is temporarily closed due to refurbishing, so Mrs. Slocombe and Miss Brahms are given counter space over in the Gents. However, the men aren't very happy at having to share their area and do their best to make them unwelcome.

An after-hours staff meeting produces an idea to introduce background music and a recorded voice; the only question is--whose voice?

Mr. Grace has an idea to improve Christmas sales--all the staff are to wear novelty costumes, much to their annoyance.