Use Pegboard in the Closet and more decorating ideas, organizing tips, and homekeeping and cleaning solutions on marthastewart.com
Pegboard keeps items off the floor, in sight, and within reach. The board is sold in large sheets; have it cut to size, or use a circular saw or jigsaw. Place furring strips (thin pieces of wood) between the board and wall, so you'll have room for the backs of hooks.

Great idea Martha.