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.

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