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

Walgreens and CVS have pivoted from expanding store locations 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.

Inflation, softer consumer spending, theft, and competition from Amazon and grocery stores are also making it difficult for drugstores to turn a profit.

CVS ' operating margin for its pharmacy and consumer wellness business was 4.6% last year .

Walgreens ' retail pharmacy unit was the second -biggest contributor to sales last year , raking in $116.76 billion .

E-commerce rivals, discounters and big-box retailers are an even bigger threat to the retail side of the pharmacy businesses.

Retail pharmacies likely won't disappear soon, but may not need to "exist in their current form," analyst says.

Walgreens and CVS are cutting costs and closing stores.

CVS announced it was shuttering 900 stores, or nearly 10% of its U.S. retail locations, over a three-year period.

Amazon , Walmart , CVS and Walmart are feeling the pain from bets on primary care.