Despite Rose's concern for her husband, the insomnia and nightmares Harry's been suffering from do not slow him down. He's anxious to return to work at the store, where he has arranged for legendary author Sir Arthur Conan Doyle to appear for a Sherlock Holmes book signing, and he greets Sir Arthur with a seemingly renewed zest for life. With an accompanying new zest for work, he inspires senior staff to improve and reinvigorate their departments. Miss Ravillious knows just what is required for her department: Agnes Towler. And as a reward for her smart and deft handling of the suffragette crisis, Harry agrees to Agnes' transfer to ladies' fashion. Back in accessories, Frank Edwards and Kitty indulge in a little flirtation. When she soon receives a box of candy with an anonymous note detailing a rendezvous, she is convinced that her secret admirer is Frank. Meanwhile, at home, Rosalie prepares for her first society soiree at Lady Mae's, while Lois, like Rose, worries about Harry; the nightmares and hallucinations plaguing him since his accident trouble her.
Harry's determination to keep Selfridges at the forefront of progress by issuing public stock shares – and fast! – irks the bankers whom he needs. Conservative and traditional, the bankers are wary of the dubious publicity surrounding the brash American. Harry tasks Mr. Crabb with solving his banker problem.
Harry and Rose host a lunch with Sir Arthur and his American traveling companion, the spiritual medium, Rex Crennell. As conversation drifts to Harry's recent brush with death, the Spiritualist movement comes up, and Rex offers to hold a séance for the staff in the store. Harry reluctantly agrees, uncomfortable with the notion, but still keen to keep his star guest Sir Arthur happy, and for the store be at the forefront of new thinking.
On their tea break, Doris and Kitty bump into Miss Bunting, the disgraced former head of ladies' fashion. Doris sees what a toll unemployment has taken on poor Miss Bunting, who can't get a job without a reference, and they strike up an unlikely friendship. Doris approaches Mr. Grove to see if there's any way Miss Bunting could get a reference from Mr. Selfridge, and he agrees to try, his eyes opened to her kind and caring nature.
The Palm Court is packed tight with staff and guests for Sir Arthur and Rex Crennell's séance. The events are dramatic, spooking some of the guests, especially Miss Mardle, who is convinced that one of the messages is from Mr. Grove's recently deceased wife. But the séance is broken when a malign male force 'pushes' itself disturbingly onto Rex. Candles flicker, and an ominous mood descends on the room. Rex tells Harry he felt the malicious spirit drawn to him. Harry is dismissive, but Lois is concerned. She clearly has something on her mind.
At Mr. Crabb's suggestion, Lady Mae – who is continuing her steamy affair with Victor - is tapped to 'help out' when the bankers make a key visit to the store. She knows the chairman socially, and during a somewhat awkward tour of the shop floor, she just happens to be there. Naturally, she wins them over with her clever magic touch, bringing the bankers on board. Once again, Harry is in her debt.
Meanwhile, Agnes undertakes her new role in ladies' fashion, enlisting the help of Henri, who is more than willing to help. Their friendship takes an unexpected turn when they share a sensual, sudden and secret kiss.