According to Deloitte’s Annual Black Friday-Cyber Monday survey, consumers plan to spend an average of $567 during Black Friday and Cyber Monday sales, up 13% from last year. While consumers seem to be ready to increase spending during this holiday season, wallets will certainly be hurt as inflation remains steady for necessities like food. Stacey Widlitz, SW Retail Advisors Chief International Store Hunter, joins Yahoo Finance to give insight into where consumers will be looking for the best deals and which retailers poised to capitalize on current economic trends during this holiday season.

On where consumers are focused Widlitz explains: "Obviously consumers are spending on necessities, you know, we're talking about disinflation and that's great, but the bottom line is food costs are up 20% on a two-year basis and that's not declining, that's just stagnating. So the consumer is still feeling it and still spending on their basics. I think you're going to see a lot of that this holiday season. You're already seeing with the likes of Target (TGT) and Walmart (WMT) they're pushing hard on food and basics and health."

Watch the video above to find out which retailers Widlitz are in the best position for what consumers want right now.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video Transcript

- So give us like the big picture, first of all, going into this holiday season. Given what we've heard from the retailers so far where they're definitely sounding a little bit cautious, but given also some of the survey results that show higher spending is coming.

STACEY WIDLITZ: Absolutely. And we've heard different stories from different retailers. Obviously, consumers are spending on necessities. We're talking about disinflation and that's great but the bottom line is, food costs are up 20% on a two-year basis and that's not declining, that's just stagnating. So the consumer is still feeling it and still spending on their basics. And I think you're going to see a lot of that this holiday season.

And you've already seeing with the likes of Target and Walmart they're pushing really hard on food, and basics, and health. I think the discretionary part of the business everybody said it's still weak, Home Depot, big ticket stuff is weak, Williams-Sonoma, their comps are down double digits on furniture. So there are issues out there.

But clearly these stocks have rallied and particularly the underdog retail stocks have rallied 15% to 30%, some of them, because expectations are low. And also, inventories are really lean, very clean going into holiday. So I think investors are giving a pass to the retailers for perhaps disappointing sales as long as their margins are intact.