Retail spending shot up as Chinese consumers opened up their wallets during the Spring Festival holiday this year (January 22-28).

Traditional festival goods, including food, fireworks, jewelry, clothing and household appliances, all witnessed soaring sales. Monitored large retail and cuisine enterprises across the country reported a sales volume of around 470 billion yuan ($74.2 billion) during the seven-day holiday, up 16.2 percent year on year, according to data from the Ministry of Commerce.

Stable employment and continued wage growth are major factors behind the significant consumer boom, and this should be a needed boon for the economy as the country seeks to rely more on domestic demand.

"Despite high inflation last year, China's consumer market is bursting with vitality," said Lu Zhengwei, chief economist with the Industrial Bank Ltd. "It shows that China's efforts to stimulate consumption is yielding results."