"We are actively looking for new residential projects around our new and existing stores," company spokesman Jamie Radabaugh said.

After subdividing and installing basic utilities, the retailer sold 129 lots out of 233 lots adjacent to its store in Yorkville, Ill.

Yorkville home builder AMG Homes, which bought the lots, agreed to purchase all of its building supplies from Menard, except for items like cement, which Menard does not carry in sufficient quantity, the report said.

Menard also has plans to develop areas around stores on land it purchased in Warsaw, Ind., and Urbana, Ill., the report said.