Magento Open Source, 1.9.x
Hidden Categories

There are many ways to use hidden categories. You might want to create additional category levels for your own internal purposes, but show only the higher-level categories to your customers. Or, you might want to link to a category that is not included in the navigation menu.

To create hidden categories:

1. On the Admin menu, select Catalog > Manage Categories.
2. In the category tree, select the category you want to hide.
3. On the General Information tab, do the following:
a. Set Is Active to “No.”
b. Set Include in Navigation Menu to “No.”
4. On the Display Settings tab, set Is Anchor to “No.”
5. Although the category is hidden, you can still create additional subcategories beneath it, and make them active. Complete the following settings for each hidden subcategory:
a. On the General Information tab, set Is Active to “Yes.”
b. On the Display Settings tab, set Is Anchor to “Yes.”

As active categories, you can now link to them from other places in your store, but they will not appear in the navigation menu.

6. When complete, click the Save Category button.