I find things all over. I'm not a huge fan of Wally World (you know the store I mean) but you can find really great deals on things there. Sometimes they even mark their clothes down to $1, and you cannot make it for that price. I also like to shop the craft stores for their clearance items and have a few things that I can throw together in a jiffy.
Today I was a WW and found backpacks for $1, they are cute and girly and I don't know who they will go to yet but they are headed for the closet as I type. The other day I found cute beaded butterfly trim at the fabric store on clearance for $.25 a yard, YES 25 CENTS! I bought it all.
It is very important to go through your gift stash occasionally it can get quite messy!