Marijuana retail sales in Spokane County increased by 57 percent during the 2017 Washington state fiscal year, which ended June 30.

While sales continued to climb quickly in the latest 12-month period, the growth rate was down sharply from the 2016 fiscal year, when sales leaped 162 percent in the county, according to data from the Washington State Liquor and Cannabis Board. 

Last month, the board reported retail sales came to $851 million statewide, with $315 million collected in taxes for the fiscal year. That total sales figure was up 69 percent from the prior year’s $502 million.

Of the $851 million total, Spokane County reported about $90.6 million in retail sales, a 57 percent gain from its 2016 retail sales total of $57.6 million.  The 2017 countywide retail sales generated $34 million in taxes.

Spokane County’s total sales in fiscal year 2017 ranked as the third most statewide, behind King and Pierce counties, as the county slipped a spot from the prior year, when it ranked second behind King County.

King and Pierce counties had total retail marijuana sales of $249 million and $99 million, respectively, in the recently completed fiscal year. 

The WSLCB offers four types of marijuana licenses: producer, processor, retailer, and transporter. 

Statewide there currently are 1,144 producers, 164 processors, 505 retailers, and 33 transporter licensees. Of those, Spokane County has 120 producers, 122 processors, 27 retailers, and three transporter licensees.

Mikhail Carpenter, spokesman for the WSLCB, says the state is poised to adapt a new traceability system this October through MJ Freeway Business Solutions, a Denver-based cannabis software company. He says the WSLCB hopes to implement a system that will easily track both the production and sale of all marijuana within the state, but also grow and flex with the rapidly changing industry. 

 “Over the last four years, we have learned a lot about the industry, including aspects that were unknown when the current traceability system was implemented,” he says. “The number of changes we’d like to make to the existing system were beyond the scope of our existing contract.” 

Therefore, he says, the WSLCB contracted with MJ Freeway to be the state’s new vendor, and is working to implement the system by Oct. 31.

Carpenter says one other change that has impacted the industry recently was the passage of Senate Bill 5131 last month, a law that he says is intended to further restrict outdoor advertising for licensees.

“I would say that the law changes around advertising have been a pretty significant thing for licensees,” he says. 

The new law, which went into effect July 23, focuses on outdoor signage and billboards, limiting licensees to displaying just a business name with no logos, characters, or product images that might otherwise appeal to underage consumers. 

Carpenter says so far, the WSLCB is taking a measured approach to enforcing the law, allowing licensees additional time to change larger signs and billboards.

Most retailers here seem to be taking the changes in stride, including Steve Burks, owner of Treehouse Club at 14421 E. Trent. 

“We’ve always tried to be really careful about following laws and advertising guidelines,” says Burks. “It’s a new change, but all of our signage was already legal.”

Treehouse Club, which opened in December of 2014, has been listed amongst Spokane County’s top selling retailers in recent months.

Burks says while the shop is happy to see marijuana sales here continue to climb this year, with more sales comes increased competition. 

“Spokane County has close to 30 stores now, so there’s lots of competition, particularly out here on Trent Avenue,” he says.

He says some of the shop’s more popular products now include marijuana concentrates, which are made up of a waxy oil extracted from the plant and inhaled via a process called dabbing, producing a greater high. 

“Dabbing is a bit different, and I think people were leery at first,” he says. “But people are starting to come around, and it’s definitely becoming more popular.”  

Eric Skaar, who owns Sativa Sisters, another of east Trent Avenue’s retail marijuana shops, says he too has noticed the increase in competition.

“It does feel like we’ve had a lot of new competition coming in close to us,” he says. “Sales this year have perhaps leveled out a bit, but we’re still doing well and are very happy where we’re at.”

As for the changes in advertising, Skaar says his shop is already looking into changing its logo, which features a large marijuana leaf between the outline of two women’s faces. 

“We’re still sorting through things with the WSLCB regarding our shop’s sign,” he says. “For now, we’ve covered it up, but I’m not overly concerned as it’s a small thing to change.”