Just to make sure I am understanding:
You are trying to rank for the following 3 keywords:
Towels
Egyptian Cotton Towels
Personalized Towels
If that is the case, I recommend that you do not attempt to rank for the single word "Towels". This is too broad of a term and doesn't reflect buyer intent. You may want to look into keywords like "Bathroom Towels" or "Buy Cotton Towels" instead.
Since I recommend disregarding that keyword, you could take that single term out of your title tag to cut down on some of that keyword usage.
The 1 word in your URL category is fine
Meta description - don't worry about, that doesn't affect on page optimization at all. It is good to use for CTR though, so you may want to find ways to make it sound less repetitive and add a call to action.
There are a lot of references to the word "towels" in content though. You can definitely remove those or substitute other words, or just leave some areas as something like "Egyptian Cotton" because the user is likely to know you are referring to towels in that context.
For example, your top graphic with "Towels" could possibly be rewritten to say
We offer a variety of towels to meet your needs:
- Egyptian Cotton
- Personalized and Embroidered
- For the Nursery
- For the Beach
You can probably find other areas on the page to do this as well.
I think cutting back on these references would make your internal menu links fine. If you do change those as well, consider doing some user testing to make sure people can still find what they are looking for.