To know where the light fixtures are allowed to be placed you need to show us where the storage is and what kind of lamp is involved (fluorescent, incandescent or LED) and if the fixture is open or closed.

For instance, incandescent luminaires with open or partially enclosed lamps are not permitted in a closet and other types of fixtures must be certain distance from storage.

In my area, there are building code requirements for closet lighting because of the fire potential. Check out what applies in your area first.

I would go with basic ceiling lights. Wouldn't sconces end up partially hidden by shelving and hanging clothes?

An open sconce would not be allowed by the National Electrical Code. The best light fixture location in a closet is on the wall above doors or at the ceiling in order to be the required distance from combustible materials. Without knowing the design of the closet it is not really possible to design the lighting.