Retreat does not take the 'step' or reduce move :
http://forums.sjgames.com/showpost.p...8&postcount=11
A few more posts by Kromm on the subject here :
http://forums.sjgames.com/showthread.php?t=74160&page=2 (post 15 et 16).
Mostly retreating dodge is powerful .. as long as you can retreat.