This closet was the only closet that had shelving in it when we bought our house in 2010. The rest of the house had holes in the closets where shelving used to be. This was my tease closet, because the 'California Closet' label on it told me that at one point this house was full of the high end closet system. Ironically, we almost ripped the shelves out of the closet ourselves in order to come up with something more useful. (I wish I had a 'before' picture of the closet since it only had the top two shelves and hanging rods at the top initially.) Instead, I tracked down this wardrobe unit from IKEA, which was identical in color to the off white California Closet shelves. Bill painted and added lower closet rods on either side of the unit for Clover to reach when he's a couple years older. The wardrobe is attached to the back wall of the closet for safety's sake, as well.
Also, we removed the doors to the closet, since they were big and this room is small. Curtains were our solution for closet 'doors' though in all honesty, they are rarely closed unless Lucky and Charm are playing peekaboo with Clover:).
Bill made the 'built ins' on either side of the window using IKEA Besta storage pieces as the base and shelves. He made a base and added crown molding which was an adventure for him. I lined the back of the upper bookcases with wrapping paper.
This vintage paint by number was my inspiration for the whole room.