Mr. Goldberg is hired as a junior after having recently run his own small tailoring business. To Captain Peacock's chagrin, the staff learn that Mr. Goldberg had served under the Captain but recalls those army days differently.
The staff must take physicals to get insurance. Listening through the door of Mr. Grace's office, they hear Mr. Harman describing the state of the furniture, which they misunderstand as being the results of their physicals.
By permission of Mr. Grace, Mrs. Slocombe moves into a display apartment in Grace Brothers, because her new home is occupied by squatters. Due to a transport strike, Mr. Humphries seeks to join her in her new accommodations.
Mrs. Slocombe temporarily takes the place of Mr. Rumbold, who has taken ill . She eats the cream cakes she finds in his office. But she then gets a call from the hospital warning that the ice cream is what made him ill.
Captain Peacock is challenged to a boxing match by a member of another department. He backs out, and Mr. "Hugger" Humphries is "elected" to take his place in a wrestling match. He loses that match, but Mrs. Slocombe enters the ring and defeats the challenger.
The standard of the canteen food of Grace Brothers is rapidly going from bad to worse. After confronting the catering workers with their complaints, the staff are told to get on with the food preparation on their own.
Mr. Goldberg runs an agency to get the staff better jobs. After Captain Peacock and Mr. Rumbold become aware of this, Mr. Humphries and Mrs. Slocombe are given raises, and decide to stay with the store.
When the staff of the Ladies' and Gents' departments don't participate in a strike, relations between them and the rest of the store's employees become understandibly bitter. In order to improve the mood, the staff presents a life-size Punch and Judy show for the other employees' children.
