How do I change the side panel

[chanki]

Hi,

just starting up with the modern theme, and I can't see to figure out how to edit the RHS panel

1) I think it should be populated with cities - it doesnt seem to do so - currently blank - any idea why
2) how can I edit it so I add pictures and other content in that panel

also I have another question: how can I add an image on top of the categories and below the search bar?

here is my website http://www.omgads.co.uk/

Thanks a lot for your help
Chanki

[design]

feel free to grab code from other themes. Bender is a good one!
I find this to be a HUGE benefit to osclass.