when using one of your provided designs, the navigation “browse categories” does not shrink with the slider. Instead it overlaps the following content as seen on the picture.
The Browse categories menu and slider are two independent elements which are configured independently. You can decrease the Browse categories or increase the height of the slider.
As an alternative, you can disable Browse categories to be always open on the page. In the result, the categories menu will be opened only on the hover. https://xtemos.com/docs/woodmart/options-for-pages/
I have another question. On yur demo shop the category images look nice. They are not being resized.
On my store, the category images are resized to 200×200.
You need to enable masonry grid (in the Products Category element http://prntscr.com/lni66n ) for categories and upload images of different size for features image in a category.