Making sense of the past seven days
Tony Blair clearly set a precedent when he declared he would leave - but not just yet.

High profile retailers have been following his example over the past week. First, Alan Giles, the veteran chief executive of books-to-CDs group HMV, said he would step down at the end of this year. The revelation coincided with disappointing results.

Then, just yesterday, Matalan boss John King followed suit. He hasn't had such a long innings in the chief exec's seat as Giles - in fact he is the value fashion and homewares group's third leader in five years.

Effective and unambiguous leadership is essential in any company, so it's unsurprising that the pair's prolonged departures have raised eyebrows. But the circumstances in each case are quite different, as are the implications for their businesses.

Giles is in the middle of a protracted takeover attempt. He wants to buy bookseller Ottakar's and bolt it on to his market-leading Waterstone's chain. But the bid - which has sparked a derailment campaign by publishers and authors - is now in the hands of the Competition Commission and is likely to drag on for months. Giles's determination to see the deal through explains why he decided to remain at HMV until the end of this year, and makes sense from the company's perspective.

But John King's position is different. Matalan has been beset by trading difficulties, and like-for-likes were down more than 5 per cent over Christmas.

He has also had to cope with persistent talk that his relationship with founder and chairman John Hargreaves was strained. True or false, the revolving boardroom door at Matalan means the speculation has been taken seriously. In those circumstances, you have to wonder what the benefits are of remaining in post until the end of December. There is a danger that the ship will become rudderless as managers puzzle over whether to report to King or Hargreaves and where the business is headed.

The sudden replacement last week of Somerfield chief executive Steve Back may have been notable for its brutality, but there is a lot to be said for getting senior management changes over and done with clearly and quickly, to keep business on an even keel.

It will be no surprise if King ends up leaving Matalan earlier than planned. The hunt is on for a replacement and once the right person is found, the best thing would be a quick coronation.

In this week's issue we take a look at the problem of rising business costs, which have been highlighted by several store chiefs in recent weeks. It's a real issue, especially since cost inflation has combined with selling-price deflation to catch retailers in a painful pincer movement. In his typically forthright way, Verdict chairman Richard Hyman points out that the best way to cope with costs is to sell more.

It looks as if retailers are in for another tough year, but the winners are those that can grow market share and not simply manage the cost base. It will be a challenge and no doubt will claim the scalps of more directors as the year goes on.