Category page with multiple loops

I was wondering if this is possible.

If you take a look at Pacific4.com and click on Work Apparel you will see various categories of clothing. With each category it has links for the products in that category under the description of the category.

If I have categories set up such as Work Apparel, which has sub-categories such as: Shirts, Pants, Jackets; is there a way to make the loop for wordpress to automatically create such a page?

I am trying to recreate this page so that if I put each product as a post, I can just assign the proper category and it will use wordpress as a CMS. How can I make a loop to pull sub-categories and post those, which has a loop to pull the products of that sub-category?