Here’s why Walgreens and CVS retail pharmacies are struggling — and what they’re doing to fix it

CNBC August 18, 2024
Annika Kim Constantino

Key Points

– Retail pharmacy chains such as Walgreens and CVS have pivoted from years of endless store expansions to shuttering hundreds of locations across the U.S. to shore up profits.

– Among the biggest problems has been falling reimbursement rates for prescription drugs and several factors pressuring the front of the store, such as inflation and increased competition.

– Those drugstores remain an important fixture of the U.S. health-care system that tens of millions of Americans rely on, but they may need to reinvent themselves.

The abundance of Walgreens and CVS Health stores makes them convenient for whenever Shriya Raghavan, a research associate based in Philadelphia, needs to pick up necessities like gum, deodorant and soap.

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