This woman—who turns out to be the Witch of the Waste—distracts Sophie from her conundrum. Suddenly, she realizes that she has to focus on trying to appease the Witch, rather than trying to survive her day to day. It’s worth noting, though, that having the Witch of the Waste waltz into the hat shop means that arguably, interesting things
can happen to Sophie, regardless of her being the eldest of three. The Witch saying she dislikes competition is interesting, as Sophie doesn’t believe she’s magical or has anything to do with the Witch. This suggests that Sophie has indeed been charming hats, though it’s impossible to confirm this for now.