The Globe and Mail reports in its Monday edition that overcapacity is a major problem underlying today's weed industry. The Globe's guest columnist Michael Armstrong writes that Ontario has more than 1,750 licensed shops, with more to come. Ontario's retail expansion boosted total sales, but shrank each store's market share. The rising competition also depressed in-store prices, which fell by more than half. The story for the private sector is much the same across Canada. By contrast, government-owned retailers are fine. They generate sales of $540,000 a store in Quebec and $300,000 in Prince Edward Island. Mr. Armstrong says success in Quebec and PEI comes down to retail density. PEI currently has just two stores per 100,000 residents, and Quebec has only one. By contrast, private-sector retailers have far more shops: 11 per 100,000 residents in Ontario and 16 in Alberta. One solution to private pot retailers' woes is brutally simple: Let stores go under. That is already happening. The industry is also seeing consolidation into larger chains. However, letting the free market run its course has a downside: more illegal cannabis sales. Governments need to make substantial changes or the illegal industry will grow.