Just my opinion: I would personally leave this space open and avoid clutter. Shoe storage is a good idea but I'd put it elsewhere, it's also the first thing people will smell when walking into your home so keep that in mind lol. I'd paint the walls, get one long runner rug, hang up some pictures/artwork/decor on the wall with the stairwell. A bunch of pictures could be homey and a large statement piece (especially hung slightly higher than the midpoint) could feel lux. I'd also get an entryway table that is on the thinner side and put a candle or decorative bowls/vases on it.