Hewlett-Packard Co. helped make dropping off rolls of film at the drug store seem so old-fashioned.
Now the computer and printer maker that spearheaded the shift to processing digital photos at home is focused on making the drug store fashionable again.
HP is expected to announce today that it is setting up kiosks in supermarkets and drug stores where shoppers can order prints, greeting cards, calendars, posters and photo albums and pick up the finished products in less than an hour.
Longs Drug Stores Corp. is launching the kiosks in 100 stores in Southern and Northern California from April to July. Albertson's Inc. is testing them at five locations in the San Diego area, and the Bashas' supermarket chain in Arizona plans to introduce them in an undisclosed number of stores.
HP seeks to change the economics of the more than $35-billion retail photo-printing market by trying to capture revenue that has been migrating to competitors such as Shutterfly.com, Fuji Corp., Kodak Corp. and its online service Kodakgallery.com, and retailers such as Costco Wholesale Corp. and Wal-Mart Stores Inc.
Any strategic shift by HP has repercussions throughout the digital photo industry.
Palo Alto-based HP is the world's largest manufacturer of computer printers and ink, the owner of photo website Snapfish.com and a maker of digital cameras, color laser printers and photo paper. Printing and imaging accounted for 29% of HP's $86.7 billon in revenue last fiscal year and 57% of its operating profit.
HP also is trying to adapt to the new profile of consumers for its photo products.
"Digital photography used to be male-dominated; all images ended up in cameras and on hard drives, and the guy would take care of it," said Larry Lesley, HP's senior vice president of digital photography and entertainment services.
"Now it's shifting to the 'iMom' who used to drop off film, then do shopping," Lesley said. "She's taking back control of the family memories."
American Technology Research analyst Shaw Wu said the kiosks were an interesting experiment for HP.
"I'm not sure if it moves the needle, but it's definitely a step in the right direction to differentiate itself," Wu said. "But it doesn't sound like the barrier is that high to competitors like Fuji and Kodak. The most important thing is getting the retail space."
