This shop seems to be really good for school supplies: many pens, pencils, notebooks, all sorts of…read morepapers, basically anything you kid might need for school. Also big selection of wrapping paper, postcards, stickers. They have things for birthdays, Laternenfest and other celebration, according to season.
All year around they sell wooden figurines: very cute, chubby dolls with round faces. Not sure about the brand, (might be Rothenburger Weihnachtswerkstatt), but they are everywhere around Christams time. Very traditional and sweet German craft.