As the Weasleys, Hermione, and Harry travel to Diagon Alley to get outfitted for the school year, they find that it has changed drastically. Lots of shops have closed, and there are Ministry warnings and instructions posted everywhere.
They've also been escorted to Diagon Alley by Ministry officials in order to ensure Harry's safety. Once they reach Diagon Alley, Hagrid takes over as their bodyguard.
Looking for new robes at Madam Malkin's, Harry, Ron, and Hermione run into Draco Malfoy and his mom, Narcissa.
Draco is being fitted for a new robe, and jumps when Madam Malkin touches his left arm.
After a bitter verbal fight, during which wands are drawn, Narcissa and Draco leave, saying they'd rather not shop at a place where people like Hermione shop (Hermione is Muggle-born).
This really frosts Harry's cookie.
Next, Harry, Ron, and Hermione visit Weasleys' Wizard Wheezes, Fred and George's new joke shop. Despite the hard times and the empty Diagon Alley, the joke shop is packed with customers. It's doing very good business.
Harry, Ron, and Hermione have all kinds of fun browsing through the store. Hermione sees a love potion that looks interesting, and Harry is shown a special line of defense items that the Ministry has been buying up, including a shield charm.