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After the First World War, Karstadt expanded rapidly and in July 1926 it established the EPA-Einheitspreis-Aktiengesellschaft with which it created a network of low price department stores. In addition to this, Karstadt acquired further production facilities in order to reduce further its dependency upon suppliers.These facilities included weaving mills, furnishers, printers and abattoirs.In 1945 the building was blown up by members of the SS.In 1932 Rudolph Karstadt stepped down from the management of the company following the dramatic decline in sales which accompanied the global economic crisis.On Rudolph Karstadt opened his first store in Wismar under the name “Tuch-, Manufactur- und Confectionsgeschäft Karstadt”.Karstadt’s strategy of offering fixed low prices in place of the still normal haggling was successful from the start as a result of which he had soon opened branches in 24 towns across Northern Germany.In 1920 Karstadt took over the company Althoff from Theodor Althoff of Dülmen and transformed the entire group into a limited company.

The first customers included Thomas Mann and his brother Heinrich.They now belong to The Ka De We Group, in which Karstadt's owner Signa Holding has a 49% minority shareholding.Its only major German competitor is Galeria Kaufhof.Further branches opened in Neumünster (1888), Braunschweig (1890), Kiel (1893), Mölln (1895), Eutin (1896) and Preetz (1897).In 1900 Rudolph Karstadt took over 13 stores from his highly indebted brother Ernst Karstadt in Anklam, Dömitz, Friedland, Greifswald, Güstrow, Hamburg (Röhrendamm), Ludwigslust, Neubrandenburg, Schwerin, Stavenhagen, Wandsbek (Lübecker Straße) and Waren (Müritz).

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