From the side navigation, Click on the "Product and Services" menu. This will expand the sub-menu items.

From the sub-menu items, click on the "Category List" sub-menu.

Then you need to click on the "Deactivate" button. Lets deactivate the "Clothing" category. Once the "Clothing" category is deactivated, you will see the "Active Department(s)" &"Inactive Department(s)" numbers have changed.