NEW YORK (

TheStreet

) --

Macy's

(M) - Get Report

is beefing up its online business, with plans to add 725 new jobs in the division.

The department store said on Tuesday that its online sales have surged 29% during the first 10 months of 2010.

These new jobs will be realized over the next two years, and overall Macy's plans to add 3,500 jobs when including full-time, part-time and seasonal help.

The company previously announced it is building a new $150 million online fulfillment center near Martinsburg, W. Va., and will hire 1,900 full- and part-time employees. Macy's is also expanding a fulfillment center near Portland, Tenn.

The new year has already set an optimistic tone for hiring in the retail sector, with

Dollar General

(DG) - Get Report

announcing on Monday that it will open 625 new stores in 2011 and create 6,000 jobs.

--Written by Jeanine Poggi in New York.

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