I think it would be even prettier if you were to wainscot the interior sides with wood then go end to end with shelves that are glass and put lighting inside the arched area...If you do this you will find you will have created an ambiance with the lighting and the light will glow through the shelves lighting up your accessories! You will love it!
1. recessed lighting in the arches
2. wood stained wainscoting on the side walls only so there will be 4 walls (2) on each side
leave the walls painted or even paper them in a texture wallpaper
3. glass shelves the width of the entire wall to wall area.

HI -- I think the staggered shelves may look cluttered . I think you could have the alcoves backed with mirror or a texture wall paper and then have some fancy wrought iron shelves mounted two on each side -- like the bakers racks . I think that will fit with the style of the room and fireplace .

Vickie, I failed to mentioned I already have recessed lights in the arches. Maybe that would be the way to go. I am trying to go for a Tuscan/ Rustic look. Do you still think the mirrors and glass shelves would look good?

Clear all the clutter and two pictures of a rustic countryside with the lights to highlight them. Maybe paint the back wall an accent color from the pictures. Add rustic wood on the side walls and match the mantle

If going rustic look. Use rustic dark wood or a reclaimed wood. It looks like you have a ton of potted plants. Are you planning on putting them on shelves? Could start to look too cluttered. I would remove that item on mantel now. Add lantern on one end and wood tall candle sticks on other. Keep look simple.

I agree with Patricia, no clutter. Very big picture to cover most of that space. Would work. Ch TJMax or Z Galleries for great stuff. Loss all the plants.

Sorry nothing on mantel forgot about TV.

Are those actually real plants or phony ones if phoney they never read Tuscan so chuck them.

Hitting a little harder on the Tuscan idea you mentioned.

You could paint the walls in the niches using a mottled process or use a textured wallpaper that you would paint an accent color.

No shelves, because there is a risk of small things slowly creeping back in =s clutter! Remove all of the plants - so sorry, but they are not adding design beauty there and I'm sure you could find another place where they would be happy. Of course, if you love your plants, keep them. . . . I don't know the history of them and am speaking as a designer - not as a horticulturist.

Hang a Tuscan chandelier, or a large sconce, centered in the space [since there is already power there]


Replace the plants with a collection of Tuscan pottery - Decorative or utilitarian. Big pieces needed here to keep the scale right.

Wallpapers - [and a Tuscan rooster]

I appreciate everyone's advice but am now embarrassed. All that clutter as you all are mentioning should have been moved before I took the picture! We just moved into this house and all that clutter is sitting on the counters there until I find a home for them or donate. All can from another home and basically unpacked the boxes and put them on the counter. My intention was not to leave them there.intention

I think I might combine a couple of the ideas already given... What about the subtle wallpaper idea for the back, combined with the glass shelves? Your heavy mantle is beautiful and I don't think I would detract from that with more wood shelves. Glass would be so much brighter. This photo isn't exactly your style, but its the same idea with painted backs and glass shelves.
http://houzz.com/photos/1739722

^^^love sandyGs first wallpaper pattern if if goes with the countertops. Glass in from of that would be stunning, and only a few selected items would be needed to accessorize them.

This is embossed wallpaper and, once installed, can be painted any color. Great stuff!

&, OMG, I apologize for coming down hard on you with the clutter comment. Didn't realize you were still moving in and it can take time to find a place for everything. . . sorry! I understand, for sure.