Mr. Goldberg is the new junior salesman, and he knows Captain Peacock from his days in the army. He knows a few things Captain Peacock would rather not share with the rest of the staff.
The group health insurance requires the staff to take physicals. Mr. Humphries brings in a ballet teacher who is a friend of his to help prepare the staff for the physicals. Later they overhear what they believe to be the results through the door of Mr. Grace's office.
Unexpected complications prevent Mrs. Slocombe from moving into her new house. Mr. Grace helps her out by allowing her to stay in the display apartment at the store. There is an unexpected transportation strike and her other staff members also need accommodations.
Mrs. Slocombe suddenly gets promoted and the rest of the staff doesn't handle her promotion too well. She also discovers that the job isn't what she expected and maybe the promotion isn't what she wanted after all.
Captain Peacock has a problem of a personal nature that is discovered by someone in another department. He ends up agreeing to a fight, reluctantly. In the end Mr. Humphries and Mrs. Slocombe have to help him out.
The staff has been complaining about the canteen food and the canteen staff is tired of hearing about it. The staff ends up getting the job of running the canteen handed to them so that they can show that they can do it better.
There is a strike at Grace Bros., but the staff of the Ladies Intimate Apparel Department and the Men's Ready-Made Department do not participate. Instead, they cross the picket lines. That gets them in trouble with the rest of the staff. To make up for it they stage a Punch and Judy show for the staff's children.
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