Hats is a hat shop, and it is first seen in the episode "My Pretty Seahorse." In it, SpongeBob and Mystery go there to buy a gray cowboy hat. Patrick also attempts to go inside the shop at the end of the episode, but the wooden plank on his forehead prevents him from entering. The store is also one of the places SpongeBob searches for Gary when he runs away in the episode "Have You Seen This Snail?" The shop also appears in the online game Trail of the Snail as a location the player can visit on their quest to find Gary.
The store is shaped like a pink bomb and has a large sign that reads its name in red. The window is large and circular. The interior is revealed in the episode "Have You Seen This Snail?"