SPACE PLANNING AND OPTIMIZATION

Method for space planning and optimization includes obtaining key demographics and key parameters for each of the one or more departments. The key demographics and the key parameters are associated with performance of the department. The plurality of stores is clustered into one or more department-level clusters based on the key demographics and key parameters. For each department-level cluster, the departments and stores are ranked to obtain a set of optimal departments and a set of optimal stores, respectively, for space planning and optimization. The optimal departments are top predetermined number of departments in each department-level cluster. The optimal stores are top predetermined number of stores in each department-level cluster. Space planning recommendations are generated, for each of the set of optimal stores, by processing information associated with the set of optimal departments and the set of optimal stores using nonlinear space optimization mechanism utilizes one or more optimization parameters.