THE countdown has begun – there are only 80 shopping days left until Christmas.

While most of us spend our time wondering where the majority of 2010 went, retailers are wondering what the festive season has in store for them.

Marks & Spencer, Next and Debenhams have all reported strong results in recent weeks, although are cautious for the outlook for the UK consumer.

Next chief executive Simon Wolfson predicts that clothing prices will rise by up to eight per cent in the coming year because of inflation and higher commodity prices, such as cotton. This, added to the imminent rise in VAT in January, adds further pressure on already indebted UK consumers.

It is not all doom and gloom, however, for as long as professional footballers continue with their various indiscretions, Mrs Rooney and Co will use retail therapy, thus supporting retailing profits across the country.

Moving back into the real world, however, the recentlyannounced 2.24 per cent increase in the national minimum wage will not be much consolation for those struggling to make their earnings stretch to buying “luxury” goods, such as new clothes.

More diverse retailers on the other hand, such as the big four supermarkets, are expected to report a more rosy outlook with the return of food price inflation pushing up revenues and, in some cases, their share of the market.

Morrisons, Sainsbury’s and Waitrose have all reported gains in market share in recent weeks at the expense of Tesco and Asda, and are beating market expectations when reporting earnings growth.

For investors elsewhere in the market, although the future may be a little less certain in terms of income received from dividends, the market is making all the right noises for those chasing a decent yield.

Last week the incoming chief executive of BP, Bob Dudley, announced that it is entirely possible the company will resume dividend payments from the first quarter of 2011. BP stopped paying dividends for the last half of 2010, after extreme political pressure following the oil disaster in the Gulf of Mexico.

The reintroduction of these payments will be welcome relief to the firm’s beleaguered shareholders as, last year, the company was the single largest dividend payer in the FTSE 100 Index, paying out about £7bn.

Any reintroduction of a dividend should support the share price, which had moved to such an extent that we have seen the company halve in value, before recovering somewhat in recent months.

Although confidence has been steadily growing, as can be seen by the rise seen in the UK’s benchmark index, the FTSE 100 Share Index, it can be a fragile phenomenon and could disappear faster then a Milliband brother after losing an election.

There had been a few nerves jangling towards the end of last week following announcements that the jobless rate remains stubbornly stuck at about ten per cent across Europe, and UK manufacturing growth had slowed.

However, with the festive period fast approaching, we will begin to see the annual buzz around high streets and shopping centres, as customers flock to the shops to buy gifts.

And with consumers parting with their hardearned cash over the next few months, the UK economy should see a major boost.

■ Wayne Berry is an investment manager in the Teesside office of Brewin Dolphin, and can be contacted on 0845-213-1340. All prices quoted in the article are from public sources. The views expressed are not necessarily held throughout the Brewin Dolphin Group. You should bear in mind that no investment is suitable for all circumstances and it is important to seek expert advice if in any doubt. Brewin Dolphin Limited is a member of the London Stock Exchange, authorised and regulated by the Financial Services Authority.