The Magic Shop is seen in the episode: F.U.N. It is a magic shop where one can buy many magic related items, including wands, hats, cards, fake bunnies, etc. Plankton and SpongeBob went here during the chase. The episode is seen again during the episode You Don't Know Sponge
The Magic Shop has a sign reading "Magic Shop" with cards and card signs on it. It has fake chains on the two sides, and has a store display window.