Want a flat-panel TV with that tool belt?

Home-improvement, clothing and office-supply stores plan to crash the party for big-screen television sets now dominated by Best Buy Co. and other electronics retailers. The development highlights the starring role that super-slim TVs are taking not just in the living room but in every nook of the home. And the new outlets could trigger ever-faster price declines as lower-cost, lesser-known brands grab shelf space and consumer recognition.

Next month, for example, Office Depot Inc. will begin selling a dozen flat-panel models. Home Depot Corp. is testing liquid-crystal and plasma TV sales in anticipation of a broad entry. Kohl's Corp., the Wisconsin department-store chain, rolled out its first line of LCD TVs this summer, and RadioShack Corp., which left the market several years ago, has returned with flat-panel sets.

All these retailers hope to tap soaring flat-TV consumer demand in the U.S. and Canada, which is expected to reach $20.2 billion this year, up 79 percent from last year. More stores are carrying the big-screen TVs in part because more companies are making them. Researchers count some 90 flat-panel brands sold in North America now, up from 63 last year. "Competition has just exploded," says Greg Petersen, a Philips North America vice president and a member of the company's international retail board.

If the newcomers opt for a price war, it could pose a dilemma for consumer electronics retailers like Best Buy and Circuit City Co., whose fortunes have soared on strong flat-TV demand. These retailers get up to 25 percent of their sales and a larger percentage of their profits from TVs. In its most recent quarter, Best Buy reported a healthy 3.7 percent increase in sales at existing stores. But excluding TVs, Best Buy's comparable-store sales would have declined, estimates Morgan Stanley & Co.

"Right now, I'd argue we're in the sweet spot for consumer-electronics specialists like Best Buy and Circuit City," says Morgan Stanley retail analyst Gregory S. Melich. Consumer surveys show that lower-cost brands could have a big impact on sales. A Morgan Stanley survey, for instance, shows there's price resistance well below the current $2,000-to-$3,000 price for a big-screen TV. "Two-thirds of American households will not be interested in buying a high-definition TV until the price of a 36-inch or larger set is about $600," says Mr. Melich.

Among the retailing hopefuls, Home Depot wouldn't comment on marketing tests involving its stores. A television wholesaler says the Atlanta-based company is in discussions for products to sell this year and next. Home Depot's Web site lists 38 flat-panel models, but they aren't carried in the stores.

Harvey Seegers, president of Home Depot Direct, which includes Web sales, sees a big-screen niche among the chain's do-it-yourself customers. "I want to be able to offer online a do-it-yourself home-theater kit that's more than a flat-screen TV. It can include a stud finder, a frame that has predrilled holes, and cable covers. In 60 minutes, you can have a home theater." He plans to begin marketing the kit this fall.

Office Depot sees TV sales as a natural segue from selling personal computers and computer monitors. Customers of the Delray Beach, Fla., office-supplies chain want to be able to run a spreadsheet and watch a business-news channel on the same screen, says John Lostroscio, vice president of merchandising. "Our entry is absolutely a convenience play for our core customer," he says.

The chain had "good" sales of 20-inch, dual-purpose sets, and it plans to expand the business with larger-size screens. By October, some 400 stores will stock 10 to 12 flat-panel models, including a 42-inch TV, Mr. Lostroscio says. Office Depot, which has also been testing computer-repair services in some stores, plans to provide home and office installation with the TVs, he says.

In some ways, these retailers aim to piggyback on the success of club stores that have expanded into big-screen sets. Costco Wholesale Corp., better known for bulk-food sales than electronics, recently said its flat-panel TV sales reached $1 billion for the first 44 weeks of its fiscal year ended Sept. 3, up 60 percent from a year earlier.

Meanwhile, online sales of big-screen TVs by Dell Inc. and others haven't had the retail impact expected a few years ago, says Tamaryn Pratt, president of market-watcher Quixel Research LLC. Adds Morgan Stanley's Mr. Melich: "If you turn the clock back to three years ago, people feared Dell way too much and didn't fear Costco enough."

Traditional mass-market retailers like Wal-Mart Stores Inc. are also expanding their big-screen selection as prices fall. Wal-Mart recently redesigned its electronics department to showcase flat-panel TVs. Philips's Mr. Petersen says that two years ago Wal-Mart didn't stock any Philips flat-panel sets. Today, it carries up to six models, including a 50-inch plasma-screen TV.