Hats is a hat shop, and it is first seen in the episode "My Pretty Seahorse." In it, SpongeBob and Mystery went there to buy hats. 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 was also one of the places SpongeBob was looking for Gary when he ran away in the episode "Have You Seen This Snail?"
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?"