Whenever I drive into Richmond from my home in rural central Virginia, I pass by American Family Pawn and Gun, or at least the building where that gun shop used to be. Despite a pretty good location on a busy four-lane highway in the Richmond exurb of Powhatan, Virginia, the store closed its doors for good a little more than a year ago.
The owners of American Family aren’t alone. As American Rifleman reports, the number of Class 01 and Class 02 FFLs across the country has declined by more than 10 percent in the past five years, and in communities from coast-to-coast the small, independent gun store is becoming something of an endangered species.
n 2021, there were 52,993 Type 01 FFLs nationwide. By 2025, that number dwindled to 46,072. Companies and individuals applying for the license, which is good for three years, dropped even more dramatically. In the same period, that figure went from 7,445 to 4,160.
The trend began long before 2021. BATFE’s “Firearm Commerce in the United States Statistical Update 2024” (the latest available) reports that in 2013 there were 54,026 Type 01 FFLs. By 2016, the number was up to 56,074. It has declined every year since. The trend is identical for pawn shops licensed to conduct firearm transfers—Type 02 FFLs.
The figures dwarf in comparison to the 1990s, when more than 200,000 Type 01s were valid nationwide. Gun stores back then were a respected and valued member of every community, holding special events for charity, raffles for churches, big-buck contests and more. Many were gathering places for enthusiasts, a stop on the way from work and trade-in racks attracted crowds looking for a bargain or special gun.
When I moved to a small farm not far from Farmville, VA in 2012, my nearest gun store was located inside a gas station. Millbrook Country Store featured some of the best barbecue and fried chicken around, but it also had a small gun counter and routinely hosted concealed carry courses and classes on topics like trapping. Sadly, after the store was burgled one night, with thieves smashing through the windows at the front of the store and making off with multiple firearms, the country store stopped selling firearms.
American Rifleman’s Guy Sagi says when these independent shops shut down, the loss to a community can be immense, even if the industry itself doesn’t blink.
Gun sales this year continue to climb, despite the drop in Type 01 FFLs. Corporate-owned chains and larger outlets are apparently taking up the slack when it comes to initiating 4473 NICS background checks.
Buried in BATFE’s 2024 report (linked above) is a rarely mentioned challenge small gun retailers face. There were 9,094 Type 07 FFLs (firearm manufacturers) in 2013. By 2023, there were 20,023—more than double the number.
Small shops don’t have the retail space or budget to inventory or display that increased selection. Big companies have larger lines of credit, occupy more square footage and displays are large.
That small FFL down the street can order any gun, though. And there’s always that trade-in rack, an attraction with a well-documented history of gifting smiles to every enthusiast.
Independent shops and even big box chains may soon face another threat if the ATF adopts a rule allowing FFLs to ship guns directly to customers located in the same state. The proposed rule would be a benefit to gun owners, particularly those in rural areas who may not have a nearby store they can frequent, but it would also be a boost to big box retailers and companies that operate largely online without a traditional brick-and-mortar presence.
Unlike groups like Brady, I’m not opposed to that proposed rule, but it will likely put even more pressure on independent shops and those located in small towns throughout the country, just as Amazon and other online sellers have impacted brick-and-mortar retailers. The disappearance of these stores doesn’t pose an existential threat to the future of our Second Amendment rights, but when these shops shut down, it is a loss to the communities they served.
The next time you drive past a small gun shop, stop and check out what they have to offer. You never know what treasures might be waiting for their next owner, and I’m guessing the folks behind the counter will be delighted to see a new face in their store.
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