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Staples Drops Store-Brand HP Cartridges From Its Lineup

by Jim Forrest · Lyra Research, Inc. · March 1, 2007 - page(s): 49

After five months of persistent rumors, Staples announced that it will discontinue the sale of HP-compatible ink and toner cartridges. Lyra Research first began hearing rumors to this effect at World Expo last August. Months of relentless inquiries by Lyra finally resulted in a January 29 e-mail response from a Staples spokesperson who confirmed the story. According to the spokesperson, the reason for Staples’ decision was that “Hewlett-Packard continues to rapidly advance its technology in printing systems and ink and toner, [and] this decision offers the best solution to customers and allows Staples to focus its resources on the many other product categories where we can innovate with Staples-brand products.”

We found some convincing evidence that Staples was indeed dropping its line of HP-compatible cartridges in mid-December, when the office superstore published its January 2007 catalog. Not only were Staples-brand HP ink and toner missing from the catalog — Staples-brand Epson-compatible ink cartridges were also conspicuously absent, although the catalog offered store-brand cartridges for Canon, Dell, and Lexmark machines.


Read more anaylsis on the Staples move

Staples provided no explanation for the absence of Epson compatibles, but the move may have more to do with Epson’s lawsuit against Armor Group (Staples’ vendor for the store-brand cartridges) and less to do with any agreement between Epson and Staples. By early February, Staples had pulled all HP-compatible cartridges from the shelves of its stores and eliminated them from its Web site. Epson cartridges were still available in stores and online, but we noticed that some SKUs were out of stock at the stores we visited....

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