While his decision to step down is a surprise, the enigmatic Matalan chief has undoubtedly made his mark at the value retail giant.

When he was appointed Matalan chief executive in late 2006, Alistair McGeorge was the retailer’s fourth boss in five years.

But McGeorge, who has now decided to stand down, was in the post longer than most of his predecessors and will depart with his reputation enhanced.

During his time in charge he was able both to improve the business and to keep demanding founder John Hargreaves happy. Although an attempted sale of Matalan last year proved impossible because of the high valuation Hargreaves put on the business, a £500m refinancing earlier this year enabling the owner to take a £250m dividend impressed the industry.

McGeorge, who like so many private company chiefs shuns the limelight and was not available for interview, has a financial background - he is a qualified accountant - and is one of the few in the industry who followed the finance route to the top.

Matalan was McGeorge’s second big role as a retail chief executive. His first was Littlewoods, where he was supply chain director before succeeding Barry Gibson as chief executive in 2001 in the wake of a 63% plunge in profits. There McGeorge was responsible for getting the business into shape for its eventual sale - the shops went to Primark and the Barclay brothers bought the home shopping arm.

At Matalan, where he succeeded John King, McGeorge quickly made improvements to buying and trading - partly by ridding the retailer of a silo mentality which he said had developed and establishing in its place a one-company mindset.

Mike Tobin, head of the retail practice at headhunter Warren Partners, has frequently dealt with McGeorge, including on fundraising events for industry charity Retail Trust. The Matalan boss is a keen supporter and last year he ran the London Marathon for the cause.

Tobin describes McGeorge as a charismatic leader who makes sure he is very visible within the business.

“He sets a clear agenda and is very results oriented,” says Tobin. “He’s good at spotting talent and developing people. At the same time he’s not afraid to deal with performance issues, and he does that in a fair way.”

The results of improvements in product and stores were evident in Matalan’s most recent profits, which showed a 30% improvement at the operating level last year.

As well as opening more shops in this country - he believes there is scope for another 100 - he has developed the business internationally with openings in the Middle East.

While he may have set out a route map for more growth, McGeorge will not be around to see the end of the Matalan journey. He is thought likely to stand down early in the new year, once Christmas is out of the way - although he may retain a non-executive position.

Some believe McGeorge is simply ready to move on. The whisper is that he is likely to get involved with private equity-backed retailers, which would benefit from his combination of retailing insight and financial acumen.

Having played a pivotal part in arranging Matalan’s refinancing, McGeorge has enabled owner Hargreaves to receive one of the biggest dividends ever paid to an individual and there is little doubt that McGeorge was well rewarded himself.

It still leaves Hargreaves looking for an eventual exit. But that will not be McGeorge’s problem.

In Numbers

Matalan’s recent trading (13 weeks to May 29)

Like-for-likes up 3%

Sales up 4.4% to £277.4m

EBITDA up 1.7% to £41.4m

Operating profit before exceptionals up 2.5% to £32.6m