Is it possible to make categories and subcategories for shop items?

I am looking at your Jollyness theme and it looks very nice on the content pages for any corporate page.

However, the shop pages look very centered to fashion shops with a few products. Is it possible to easily divide products in categories and subcategories that automatically render menus for a shop with many items?

Do you perhaps have a demo site, screenshots or a link to a customer with a shop like this?