With the rapid urbanization and increasing development of underground spaces, foundation pit groups in complex geological environments encounter considerable challenges in deformation control. These challenges are especially prominent in cases of adjacent constructions, complex geology, and environmentally sensitive areas. Nevertheless, existing research is lacking in systematic analysis of construction sequencing and the interaction mechanisms between foundation pit groups. This results in gaps in comprehending stress redistribution and optimal excavation strategies for such configurations. To address these gaps, this study integrates physical model tests and PLAXIS 3D numerical simulations to explore the Nanjing Jiangbei New District Phase II pit groups. It concentrates on deformations in segmented and adjacent configurations under varying excavation sequences and spacing conditions. Key findings reveal that simultaneous excavation in segmented pit groups optimizes deformation control through symmetrical stress relief via bilateral unloading, reducing shared diaphragm wall displacement by 18–25% compared to sequential methods. Sequential excavations induce complex soil stress redistribution from asymmetric unloading, with deep-to-shallow sequencing minimizing exterior wall deformation (≤0.12%He). For adjacent foundation pit groups, simultaneous excavation achieves minimum displacement interference, while phased construction requires prioritizing large-section excavation first to mitigate cumulative deformations through optimized stress transfer. When the spacing-to-depth ratio (B/He) is below 1, horizontal displacements of retaining structures increase by 43% due to spacing effects. This study quantifies the effects of excavation sequences and spacing configurations on pit group deformation, establishing a theoretical framework for optimizing construction strategies and enhancing retaining structure stability. The findings are highly significant for underground engineering design and construction in complex urban geological settings, especially in high-density areas with spatial and geotechnical constraints.