• by Sarah Mahoney  @mahoney_sarah, August 4, 2009

In an effort to get a larger slice of back-to-school business, Michaels Stores is offering parents a special workshop to make personalized pencil cases -- something it says comforts kids who are anxious about heading back to the Big House.

The chain will host a free back-to-school event at all U.S. and Canada stores on Aug. 15, offering kids the opportunity to cover their pencil boxes with stickers and paint.

"This has been a big year for do-it-yourself, not just because of the economy but because people want to express themselves by personalizing and creating their own décor, jewelry, clothing, and of course school-related items," Philo Pappas, EVP/category management for the Irving, Texas-based chain, tells Marketing Daily.

The chain is promoting the event in email blasts, featuring it on both its main Web site, and theknackkids.com and its kids-project site, and using its circulars and in-store materials, as well.

While most are predicting a downturn in back-to-school spending, there are expected to be bright spots, including purchases made for younger children. A survey done by MomConnections and the Parenting Group found that moms of younger kids -- those in the three-to-five set -- are the least likely to trim their BTS budget. While the survey found the majority of moms are using coupons and shopping sales, they are also on the prowl for creative, educational projects they can do with kids.

"Moms will continue to make do without new purchases for the home and for themselves, but as we've seen throughout the recession, kids' activities and entertainment is the last place that they'll cut back -- and it will also be the first area where they'll increase spending when conditions improve," the survey says.

Craft stores are among the few specialty sectors that are holding their own. Michaels, the largest retailer in the category, reported a 2% decline in comparable-store sales for the quarter, but chalked much of that up to the exchange rate in its Canadian stores.

And competitor Jo-Ann Stores, based in Hudson, Ohio, saw an overall increase of 1% in its same-store sales for its fiscal first quarter, although it expects same-store sales to decline between 2% and 4% for the remainder of the year.