How do I create sub-categories

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I would like to know if I can create a sub-category page on Shopify.


Here is an example of what I would like to do:

  1. User clicks on Home
  2. User Clicks on Christmas navigation link
    1. The link contains various sub-categories
  3. User clicks on sub-category X from point 2
  4. More sub-categories are displayed from point 3

The problem I am having with is point 4. How do I create sub-categories for a menu item?

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