1. A system for optimizing display space allocation for merchandise in stores, comprising: a computer system having a processor and memory; a database in communication with the computer and configured to save data for a plurality of stores; a data updating module configured to periodically receive raw data corresponding to the plurality of stores, filter the raw data, and update the database with updated data for the plurality of stores; a curve fitting module configured to apply regression analysis to generate space elasticity curves corresponding to the updated data for a plurality of combinations of a store cluster, a performance metric, a planogram, and a segment; a synthetic data creation module configured to receive user-selected input parameters and generate synthetic item records based on corresponding space elasticity curves; the synthetic item records configured to model a resulting change in selected performance metrics for one or more stores in response to proposed changes in the corresponding planogram and segment; and an analysis and optimization module configured to compare the synthetic item records across a plurality of segments to provide an indication of an optimum order in which to increase or decrease space in the corresponding planograms and segments based on a user selected goal.