Staff that have reached a certain age have been made redundant, including Mrs.Slocombe. Refusing to leave Grace Brothers, she becomes a cleaner and her position is filled by a younger woman. The staff decide to get her back, no matter what it takes, especially since Mrs.Slocombe's replacement has turned out to be a very annoying woman.
There's trouble in the Peacock home. Captain Peacock has changed over the years and has fallen for another women, who's equally infatuated with him. He wants a divorce but his wife won't allow it, Mrs. Peacock feels that they should work at their marriage. But then Captain Peacock's mistress makes it clear she can't control her urges. At a loss of what to do, they decide to make her jealous by arranging Captain Peacock to be found with another woman. An idea that's bound to bring trouble.
While the staff stay late at the store stocktaking, two burglars break into the store and capture Miss. Brahms, Captain Peacock and Mr.Spooner. While impersonating the most dangerous gangster family of the underworld, Mrs.Slocombe, Mr.Harman and Mr.Humphries pull out all the stops to get the police to the store and capture the burglars.
With their very overdue 100 pound bonuses, the staff are eager to gain some more and bet all their money on a horse that Mr.Harman assures them will win. Watching the race on the newly installed television they all hold their breath to either win their fortunes, or lose it all.
Mr.Grace has allowed the ladies and gents to use their floor at night to raise extra money. They decide to hold a night club and will get the word out by advertising at the local cinema where Mr.Humphries has connections. With a borrowed camera they decide to shoot their own commercial. When it's finished they go to the cinema to view it but will it be as good as they hoped?
With the high transport fees, the staff have taken drastic measures to get to and from work without going broke. To help with cutting the expense, Mr.Grace has offered small apartments for the staff. With only the basic residence fees, the staff are quite excited about living together. But they'll soon find out that being neighbors has its ups, and downs.
In this final episode of 'Are You Being Served?' it appears as though Mr.Spooner will be sacked. But after a raving review by a local newspaper for his singing performance at the recent concert, a record company offers him a contract. Meanwhile, the whole staff eagerly awaits to be cast as back-up singers. The stars of the show end it in style with a musical performance to remember.