Kris Kringle is indignant to find that the man assigned to play Santa in the annual Macy's Thanksgiving Day Parade is intoxicated. When he complains to event director Doris Walker, she persuades Kris to take his place. He does so well that he is hired to play Santa at Macy's New York City store on 34th Street.
Ignoring instructions from the toy department head, Mr. Shellhammer, to recommend overstocked items to undecided shoppers, Kris directs one woman to another store to fulfill her son's Christmas request. Impressed by Kris's honesty and helpfulness, she informs Shellhammer that she will now become a loyal Macy's customer.