Sort taxonomy.php by subcategory

Okay, I have implemented a custom post type and a hierarchical taxonomy that goes with it. Yeah for me!

I have renamed category.php to taxonomy.php and edited it to show all my custom posts of that category. Again, hurrah!

(BTW, I mostly followed this tutorial: https://net.tutsplus.com/tutorials/wordpress/introducing-wordpress-3-custom-taxonomies/)

Now, here is the thing: I would like to sort all my posts of that category by subcategory (if available).

To give you an example, say my custom post type is for products and I have 100 products. The taxonomy goes like this:

– Clothing (60 products)
– – Suits
– – Skirts
– – Denim
– – – Loose
– – – Slim
– Shoes
– – Leather
– – Suede
– Hats

Now, when taxonomy.php is called to display all products of the category “Clothing” I don’t want all 60 products to be listed. I’d much rather have them sorted this way:

– Suits
– – Suit A
– – Suit B
(…)
– Skirts
– – Skirt A
– – Skirt B
(…)
– Denim
– – Loose
– – – Jeans A
– – – Jeans B
(…)
– – Slim
– – – Jeans F
– – – Jeans G
(…)

Is this even possible?