I know I'm a bit late, but this last spring, my son who was going to start little t-ball, decided that he'd hang around Michael. There was no Michael, but according to Connor, Michael, not only was shorter than Connor, he also wasn't very good at playing t-ball. I blew it off and from time to time Michael would be brought up again. Then it stopped. All of a sudden, while cooking dinner, I noticed Connor and caitlyn (my 2.5 year old) sitting on the floor and Connor was the "teacher". He'd pick up an object and ask if anyone knew what the name of that object was. Cait screamed out what it was, and Connor ever so quickly said "you did not raise your hand". He paused, looked slightly to Caitlyn's left and said "yes, Michael, you may speak". He paused and then said (while still looking at where "Michael" was) you are correct.
Well, you should have seen the look on Caitlyn's face. She kept looking at where Connor was looking, and then would look back at Connor and then turn around to see if there as a Michael in the room. When I walked over there, Caitlyn was sitting on a red folder and about 3 feet to her right was a blue folder - where Michael was "sitting". Connor then picked up another object, asked his "class" what that object was and Cait raised her hand and said what it was. Connor told her "great job". He then grabbed one more thing and Caitlyn got bored, walked over to the sofa and just happened to be standing on the blue folder. Connor got all bent out of shape and was yelling at her to get off of Michael and that she's standing on his head. Again, Caitlyn looked very, very confused but I just told her not to worry and that Connor will be okay one day and that there really wasn't any "Michael".
This occured over 2 months ago and we haven't heard about Micheal since.
So, it's just a phase, ignore it and it will go away on it's own.
Oh yeah, and try to write down the stores, if you can. :)