Gavin relays the shocking news that rival chain Lauda is due to open on Valco's patch. While the news worries the rest of the staff, Gavin remains unconcerned. That is until he learns that the store will be run by notorious manager Cheryl Fairweather.

With barely a customer in Valco's aisles, Gavin sends a team of spies into new rival supermarket Lauda. Later, its ruthless new manager Cheryl pays him a visit.

Gavin's boss Brendan pays the store a visit, annoyed by Gavin allowing Lauda to open up nearby. Brendan, Gavin and Daniel hatch a plan to undercut the competition, but Cheryl is once again up to the challenge.

Gavin decides to fight back when he shows up at work to find a huge Lauda truck blocking Valco's entrance. Charlie discovers an embarrassing secret about Daniel.

Sparks fly when Gavin and Cheryl are forced to spend the day in close quarters. There is also a recall of some bad lasagnes. Plus, it's Sue's birthday - but will anyone have remembered her big day?

Somebody gets fired. Colin tries his hand at blackmail. Heather runs the tasting station. Things are tense between Sue and Linda, and hot between Gavin and Cheryl.

A treasure hunt is held to celebrate 50 years of Valco value. Meanwhile, despite his best efforts, Gavin can't avoid confronting his and Cheryl's situation.

It's Christmas Eve and Gavin is doing is best Scrooge impersonation. An old friend drops by for a visit. And Colin is a surprisingly good Santa.