Pharmacy chains such as Walgreens and CVS are closing down branches.

In late June, pharmacy chain announced plans to close a "significant" number of its 8,600 U.S. stores in its fiscal third-quarter earnings report to investors.

By 2027, CEO Tim Wentworth stated that 25% of the chain's locations would not be profitable and would face closure.

The latest closure of a retail pharmacy chain and the bankruptcy filing of another chain are just the latest signs of weakness in the retail pharmacy industry, following a series of CVS closures throughout the year.

"According to GlobalData retail managing director Neil Saunders, pharmacy chains were once the focal point of communities, offering both prescriptions and general goods. However, over the past two decades, this has significantly changed."

Walgreens is facing its own set of issues, including macro issues like a worsening consumer environment and pressure on pharmacy margins, which are contributing to the closures of some of its stores.

The front of store retail side of the business has been experiencing declines for several quarters, with a 4% year-over-year decline in the fiscal third quarter.

"The front of the store, where the general merchandise and beauty products are located, isn't very appealing, according to Saunders. The brands they carry aren't very interesting, and the prices are often higher than other destinations."

Pharmacy benefit managers, or PBMs, have caused a decline in reimbursement rates for pharmacy revenue, which accounts for nearly 60% of Walgreens' total sales. This has put pressure on the retail sector, which has struggled with shrinking margins.