Santa Number One is, as his name implies, one of two Santa Clauses employed by Harman's Department Store in New York City. Both "meet and greet" their many young Christmas visitors at Santa's Hideaway - an elaborate holiday venue set up for the season in Harman's toy department.
Having just finished the last shift on Christmas eve, two bank robbers with guns tie him and Leo up, in the stock room, while they break into the bank next door.
- The puppet used for Santa 1 previously appeared as Hugo in Brink of Disaster, and as the first fashion buyer in Alias Mr. Hackenbacker. It also makes a cameo appearance in The Cham-Cham, where it can be seen in the audience while The Cass Carnaby Five are performing their hit song. In The Duchess Assignment, it makes two cameos: first as one of the gamblers in the casino, and again later at the Air Show.