Target is one of the two fastest growing retailers in the rapidly expanding discount segment of general merchandise retailing. Target has delivered compound annual revenue growth over the past ten years of 14 percent, reflecting a 5 percent increase in comparable-store sales, combined with sales growth of approximately 9 percent from new stores. Over the same time period, Target's pre-tax profit has grown at a compound annual rate of 16 percent.
The key to our consistent growth is our proven strategy to differentiate Target from other discount competitors. Simply put, where there is an opportunity for Target to be different, we are — in our merchandise, store presentation and marketing. In the past 12 months, Target introduced merchandise initiatives that reinforce that differentiation — and ultimately contribute to the company's sales growth. These initiatives include Restore & Restyle ™ home improvement products; Calphalon Kitchen Essentials® cookware and bakeware; and a unique line of home products designed by highly respected architect and designer Michael Graves. These products create a new level of merchandising excitement throughout our stores.
Adding stores in new U.S. markets continues to represent a significant opportunity for Target. We are just beginning to enter some of the most highly populated markets in the United States with major opportunities in Baltimore, Washington, D.C., Boston, Philadelphia, Pittsburgh and greater New York City. Our success in the new markets we have recently entered in the Northeast and mid-Atlantic gives us confidence that our growth in the region will be strong. At year end, we operated 65 stores in this region; by the year 2001 our store base in the region will more than double. These markets offer Target exciting growth opportunities because of their dense population and the favorable income demographics of potential guests.
Target also is increasing its penetration in existing markets in two ways: by building new stores; and relocating, expanding or remodeling our current stores in those markets. While Target has one of the newest store bases among large U.S. retailers, we will invest more than $500 million over the next three years to remodel stores to keep them fresh and representative of the Target brand.
SuperTarget represents a strong growth opportunity for Target. We are optimistic about the potential of this combined general merchandise/grocery concept. At year end, we operated 14 SuperTargets, and are very encouraged with the results these stores are generating. In 1999, we will open two additional SuperTargets that reflect the right balance of store size, service intensity, capital investment and merchandise assortment to make SuperTarget a highly successful store for the long term. We anticipate the acceleration of our growth of SuperTarget moving forward.
The Target Guest Card also plays a key role in Target's growth. Credit contributes to earnings growth in two ways: by driving sales at our stores and through credit's own contribution to profits. The Target Guest Card has exceeded the company's expectations for card account growth and profitability since its introduction in 1994. Target currently has more than 12 million guest card accounts; that amount is expected to grow to approximately 20 million cardholders by 2001. Credit revenues and profit contribution are growing at a double-digit rate as a result of new account growth, operating expense leverage and the enhancement of our credit loyalty programs. Target's School Fundraising Made Simple SM card loyalty program allows guests to contribute 1 percent of their purchases on the Target Guest Card to a school of their choice. More than 2 million guests participate in this program.
The internet also represents a potential longer-term growth opportunity for Target. While we firmly believe that e-commerce will never be a substitute for store-based retailing, we will be prepared if internet retailing becomes a more important channel for our guests. As a result, we are devoting more resources to the technology and processes required to support this new medium. Our Rivertown Trading subsidiary will play a key role in our e-commerce initiatives. As we move forward, Target will use its website as one more way to build its brand, and we will become more active with on-line selling.
Target's strong brand identity and differentiated strategy gives us a competitive advantage and a resulting confidence in our future growth prospects.
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