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Staples’ Retreat from Epson- and HP-Compatible Ink Jet and Toner Cartridges
Lyra Research,discovered late last month that Staples quietly dropped Staples-branded compatible cartridges for Hewlett-Packard and Epson printers from its retail catalogs.
Newton, MA January , 2007 — Lyra Research, the digital imaging authority, discovered late last month that, after repeatedly indicating that no changes were in the offing for its line of branded imaging supplies, Staples quietly dropped Staples-branded compatible cartridges for Hewlett-Packard and Epson printers from its retail catalogs. Sources report that removing HP and Epson cartridges from the Framingham, MA-based office superstore’s catalog is the first step in what may amount to significant changes in the Staples line of aftermarket printer consumables. Staples is expected to remove all its Staples-branded HP ink and toner cartridges from retail stores early in the first quarter of this year, and the same fate may also be planned for Staples-branded Epson compatibles.According to Charles Brewer, managing editor of The Hard Copy Supplies Journal, a monthly newsletter published by Lyra Research, Staples’ decision to stop selling certain non-OEM cartridges can be seen as a victory for printer makers in their battle for market share with third-party supplies vendors.”Score one for the OEMs,” he quips. Brewer explains. “Staples has repeatedly pointed to sales of ink and toner consumables as a key revenue driver. The office supplies Goliath must sense there is an upside to dropping its Epson and HP cartridges. Throughout late 2006, rumors were flying that HP had cut a deal with the nation’s largest office superstore to get it to pull its HP compatibles. It now appears that is true.” The settlement Epson recently reached with various aftermarket companies is likely behind the office superstore’s decision to drop its Epson compatibles. “Last month, a number of companies that market Epson compatibles announced they would discontinue selling these cartridges. The companies included the French firm Armor, which supplied Staples with its branded Epson compatibles.”With over 1,500 stores in North America, Staples’ move will affect the sales of tens of millions of dollars worth of ink and toner cartridges. Given the market-leading position of the office superstore giant, the news is significant for printer makers and third-party imaging supplies vendors alike. The news raises many critical questions. Why drop these cartridges now? How will consumers react? What will the overall impact be on Staples’ business? And what does the Staples move mean for the fast-growing aftermarket imaging supplies industry?
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