This is not a measure of gun stores, this is a measure of licensed dealers. Many, many dealers do not operate a "store", so the title is totally misleading.
That used to be the case, but now a "brick and mortar storefront" is a de-facto requirement, the Clinton Administration having aggressively ended "kitchen table gun dealers" and reduced the total number of dealers by some 75% nationally. The only practical exceptions are "gun show vendors".
ETA: other dealers do exist, yes, but nowhere close to the numbers of some years ago, and not to the point of making "the title totally misleading".
In the last three years, I've bought five guns from a FFL dealer who has no store, while sitting at his kitchen table in his house. (In Maryland, no less!)
I've done the same in NY. I have a really great deal going on with him -- I would email him before I would make any online purchase and ask if he could beat it. If so, I'd pick it up from him. If not, he'd tell me to order it and have it delivered to him. $25 transfer later and everything was square. I must have used him at least a dozen times. All out of his house.
Did you actually buy five guns from that dealer, or did you do five transfers with background checks? I have done a ton of transfers with my local FFL dealer, but have never actually bought a gun directly from him. He just can't compete with online prices.
In my experience, the majority of FFL license holders do not have a storefront. In fact, I just did a quick survey of the 20 FFL's who do business near my zip code. Only 8 had storefronts. There is big business in running background checks.
There's also the concierge-style who do things primarily by appointment and primarily handle transfers/consignments and sell accessories. Kind of splits the difference between a store proper and the "kitchen table" folk.
Right, but a store is no longer brick and mortar and our industry in particular facilitated the change. Namely, Ebay as a market place, but most "stores" do not operate as an entity as we would image in the real world. Case in point, is the FFL Class 7 gunsmiths option. This can be done from home, and can be used as a dealer license. You simply have to operate in a secure area very distinctly different than your home residence - namely locked door, separate entrance, and a ton of other exceptions. BUT you do not operate as a brick and mortar.
ETA: other dealers do exist, yes, but nowhere close to the numbers of some years ago, and not to the point of making "the title totally misleading".