Ensuring the safety of existing structures is an important issue when planning and executing adjacent new foundation pit excavations. Hence, understanding the stress state conditions experienced by the soil element behind a retaining wall at a given location during different excavation stages has been a key observational modelling aspect of the performance of excavations. By establishing and carrying out sophisticated soil–structure interaction analyses, stress paths render clarity on soil deformation mechanism. On the other hand, column-type soft ground treatment has recently got exceeding attention and practical implementation. So, the soil stress–strain response to excavation-induced disturbances needs to be known as well. To this end, this paper discusses the stress change and redistribution phenomena in a treated ground based on 3D numerical analyses. The simulation was verified against results from a 1 g indoor experimental test conducted on composite foundation reinforced with long and short cement–fly ash–gravel (CFG) pile adjacent to a moving rigid retaining wall. It was observed that the stress path for each monitoring point in the shallow depth undergoes a process of stress unloading at various dropping amounts of principal stress components in a complex manner. The closer the soil element is to the wall, the more it experiences a change in principal stress components as the wall movement progresses; also, the induced stress disturbance weakens significantly as the observation point becomes farther away from the wall. Accordingly, the overall vertical load-sharing percentage of the upper soil reduces proportionally.