Joan and Peggy look like they're returning from lunch as they head into the break room. Inside are Marge and one other ostensible telephone operator, and Joan returns Marge's copy of Lady Chatterley's Lover with the comment, "I can see why it got banned!" Oh, please, Joan. As if Lady Chatterley herself wouldn't blush from reading your biography. After Joan mentions that she carries around a change of clothing and a toothbrush in her purse, Marge tries to lend the book to Peggy, but Joan initially puts the kibosh on that idea, thinking Peggy's too proper for the language therein. Joan, you're already her birth-control pimp. You're kind of sending mixed messages in the piety department. Joan then snarks that she doesn't care how old the book is -- it's just another testament to the fact that most people think marriage is a joke. Nice little thematic throwaway there. When Marge starts talking about "the desperate passion of the forbidden," Peggy, with spot-on timing, asks, "Can I borrow it?" Heh. Marge counsels Peggy not to read the book on the train, as it will attract "the wrong element." The girls disperse, no doubt ready to put in a solid and completely undistracted afternoon of work.
After Harry finishes telling a hoary and boring sexist joke, Pete leads Rachel into the conference room. Also present are Don, Ken, and a "George Pelham," from Research, who Pete claims has "more degrees than a Russian protractor." Pelham is British, which is a perhaps not-entirely-subtle nod to Rachel's desire to attract a more upscale clientele, and he says he's studied department stores such as Saks Fifth Avenue and Bonwit Teller for ideas on how to appeal to the type of shopper Rachel wants. As Rachel and Don use Don's cufflinks to get flirty in more obvious a way than perhaps they think, Pelham drones on about the spacious shopping environment in those stores and their general "less is more" philosophy in terms of displaying their products. Pelham also recommends "boutique extras" -- personal shopping services, private fashion shows, designer collections, and the like. Rachel, however, is unimpressed, saying her store already has personal shopping and designer collections, which makes her wonder if they were so focused on her competitors that they forgot to visit her store. Pete: "I've been away on my honeymoon." I quoted that directly because I was afraid that if I'd merely told you that Pete used his honeymoon as an excuse here, you wouldn't have believed me. Ken and Harry try to say they've been there, but Don wryly tells her that he can assure her no one in the room has been to her store, which is a wrong he will personally correct that afternoon. Rachel seems mollified enough as she takes her leave, and Don walks her out. Everyone else clears out, but Pete calls to Harry to stay.