Recommended: Listen to this story (07:26 - 14:51):

The Story: The largest drugstore in the US is in trouble. Staffing shortages, abrupt departures from its CEO and CFO, high debt payments, rampant in-store theft, and now a mass walk out from its employees are just a few of the challenges Walgreens is facing right now.

The drug store’s stock is down over 42% this year. Walgreens shares currently sit at $22—for reference, that’s the lowest they’ve been since 1998.

And Walgreens isn’t facing these struggles alone. Rite Aid just filed for bankruptcy in October. The entire retail pharmaceutical industry is beset with pressure from worker shortages and an uphill battle against competition from online retailers like Walmart and Amazon.

This week, Walgreens is also experiencing a nationwide employee walkout dubbed “Pharmageddon” in response to poor working conditions for pharmacy employees.

And to top it all off, last week, S&P downgraded Walgreens’ credit rating to one step shy of junk status due to the company’s inability to pay off its debt and keep a strong cash flow.

It’s not been a good year for Walgreens.

But some are still optimistic. Walgreens spokesperson Fraser Engerman is hopeful about the business and its 10,000+ locations writing, “We are confident in our company's future and the ability to deliver greater value to our customers, shareholders, partners, and employees.”

The Expert Take: Abigail Risse, analyst at Hyperplane VC, thinks part of the problem lies in Walgreens’s overestimation of consumer demand for pharmaceuticals post-COVID:

“The retail pharmacy market is not doing too hot right now and it’s because of this influx of foot traffic during COVID… Walgreens and CVS took that and were super opportunistic and they were like ‘we’re going to basically take that as the green light for world domination in terms of healthcare.’”

Risse is not pessimistic about the future of American retail health, however. She thinks further developing technology, especially AI, can help solve the current slump:

*Stay informed about the three biggest stories in venture capital and tech news every weekday morning. 2-min reads only.