Discount fashion retailer Matalan continued to ring the changes as it revealed finance director Ian Smith would be stepping down.

Chief executive Paul Mason is bringing in yet another colleague from Asda to replace him - Phil Dutton, the supermarket chain's retail finance director.

Mr Smith will leave his post in February after more than 11 years with the group but will be retained as a consultant for 12 months.

His successor will join the business from Asda next month before taking a seat on the board next March.

Mr Mason took over as chief executive in January after leaving Asda to replace Matalan's former boss Angus Monro.

He has already poached retail director Andy Clarke and supply-chain director Roger Burnley from his former employer.

He said Mr Smith's departure was an "amicable" agreement reached after talking over plans for the retailer's future.

He added: "Ian has been very supportive of me and the 12-month consultancy period means I have got access to him and all his experience.

"With a new finance director coming in and wanting to make a name for himself I think I have the best of both worlds.

"Asda is a great business, the head office is just 60 miles down the road, and I have taken the risk out of the recruitment process as I know these people already."

Mr Smith, 50, earned a total package of around £450,000 in 2001 and will be paid a full salary until he steps down.

He will then receive a typical management consultancy fee. Mr Mason said: "The deal is not a sop, it's a substantive agreement."

Matalan said group sales were up 25.6 per cent in the 17 weeks to June 22, with like-for-like growth of 5.7 per cent.

Figures from the British Retail Consortium last night showed the high-street spending spree slowed again last month.

Mr Mason said: "We are finding that the market is softening. It's what we predicted."