You can create catalog folders in the following locations:
In a multisite environment, at the top level of a site
Inside another catalog folder
To create a new catalog folder:
In the Browse panel, navigate to the top level of a site or another catalog folder.
Click the Create button in the toolbar and select Catalog Folder.
Fill in the property fields in the Details pane. Only the Name field is required.
Click Create.
If you create the folder from the Find panel and do not specify a Parent Folders property on the General tab in the folder’s Details pane, Merchandising creates the new folder at the top level.