Wal-Mart, Best Buy early holiday winners

Wal-Mart, Target and Best Buy - and, unsurprisingly, Amazon.com - were early winners as shoppers kicked off the holiday shopping season by splurging on electronics such as ultra-HD TVs and gaming consoles including Sony's PlayStation 4, analysts said.

Brick-and-mortar retailers offered more promotions and greater discounts starting on Thanksgiving Day, hoping to win over shoppers who increasingly have turned to online retailers, notably Amazon.com Inc.

'While crowds were strong, we believe that most consumers at this early stage responded solely to promotions, especially at lower- and middle-tier retailers,” BTIG analysts said in a note.

Store traffic over the holiday shopping weekend was about 2 percent higher compared last year, the National Retail Federation said. But the discounts also had a downside, with the average amount spent slipping 3.5 percent.

J.C. Penney Co. Inc. and Macy's Inc. were among department stores that had more promotions this year, Deutsche Bank analysts said.

Wal-Mart Stores Inc., Target Corp. and Best Buy Co. Inc. all have raised wages since last year, helping to improve service and keep shelves well-stocked.

Wal-Mart and Target also have significantly increased the number of items on their online stores to better compete with Amazon, Craig Hallum analysts said.

More than 50 percent Wal-Mart's Black Friday promotions, both online and stores, were on consumer electronics, compared with 33 percent at Amazon and 20 percent at Target, according researcher Clavis Insight.

Data analytics firm RetailNext said it the entire four-day weekend to account for 18 percent to 21 percent of overall holiday revenue.

Black Friday traditionally has been the biggest shopping day of the year for traditional retailers, but its importance has waned over the years as online retailers offer greater convenience and discounts year-round.

The NRF expects total sales this holiday season to increase by 3.6 percent, to $655.8 billion.

Amazon, which also discounted heavily, said on Friday the number of items sold this Black Friday would surpass last year.