A year has passed, Lord Glendenning has died and Moray is working in Paris. Recently married to the philandering Tom Weston, who has a young daughter Flora, Katherine, now owner of the Paradise, summons Moray to return and revitalize the store, which is losing trade. On arrival back he proposes to Denise, who is still employed at the Paradise, and Audrey proposes to Edmund. New staff number shop-girl Susy and store-man Nathaniel, the former in love with the latter, unaware that he is a saboteur for Fenton, a rival tradesman seeking to buy the Paradise. Katherine is aware that Weston also wants the sale and urges Moray to make a success of the grand reopening. Suspicious of Nathaniel's actions, Denise exposes him, leading to his dismissal and a hugely profitable first day under Moray's management. Seeing its potential Weston calls off his deal with Fenton.
After ten years abroad, Catherine returns to Luxembourg to catch up with her daughter Alba, brought up by Catherine's mother Elisabeth. She then kidnaps Alba and takes her on a trip to a lake up North.
