Apparel giant Benetton Japan Co. announced Thursday it will open megastores in Sapporo and Tokyo in the fall as part of moves to increase its worldwide chain of large-scale outlets.

The United Colors of Benetton outlets are to open Sept. 27 in Sapporo and Oct. 12 in Shinjuku.

This will bring to five the number of megastores opened or scheduled to open in Japan this year. A Kumamoto store opened in May, and Kyoto and Osaka outlets are to follow.

In a Tokyo news briefing, Luciano Benetton, chairman and founder of the Benetton Group, said the company is aiming to establish as many as 20 megastores in Japan by 2005.

Despite the drive toward large, directly managed stores, Benetton emphasized that the company's 230 franchises will continue to be a core force in its Japan retail operations.

While the firm would not disclose performance figures for operations in Japan, the chairman said the Italian parent company has been making profits and paying dividends without a hitch since its establishment in 1965.