This is the difference between doing a gift closet well and doing a gift closet poorly.And I don't buy "junk" just because it is on sale (I was guilty of this when the kids were younger....have gotten smarter as the kids get older) but high quality gifts that I find at a great price.
If you buy stuff just because it's cheap, it's going to look like junk and it won't be a good gift. Some stuff gets marked down because no one wants it. On the other hand, if you buy good stuff while it's on sale or on clearance, it'll still be good stuff when you go to give it as a gift.