NEW YORK ( TheStreet) -- Macy's ( M) 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) announcing on Monday that it will open 625 new stores in 2011 and create 6,000 jobs. --Written by Jeanine Poggi in New York. >To contact the writer of this article, click here: Jeanine Poggi. >To follow the writer on Twitter, go to http://twitter.com/jpoggi. >To submit a news tip, send an email to: email@example.com.