Cheaper Than Dirt, a prominent online retailer based in Fort Worth, Texas, has recently undergone significant changes, leading to questions about its current operations. Contrary to some misconceptions, Cheaper Than Dirt has not closed down but has strategically shifted its business focus. In September 2024, the company was acquired by 2A Group LLC, a private investment firm with a portfolio that includes brands serving the shooting sports and law enforcement communities. This acquisition resulted in the discontinuation of firearm sales on Cheaper Than Dirt’s platform, while the company continues to offer ammunition and shooting accessories.
Background of Cheaper Than Dirt
Founded in 1993, Cheaper Than Dirt began as a mail-order catalog business, quickly evolving into a well-known online retailer by 1999. The company built a reputation for offering a wide array of firearms, ammunition, and shooting accessories at competitive prices. The name “Cheaper Than Dirt” was inspired by a customer’s remark about their low prices during a gun show. Over the years, the company became a go-to source for shooting enthusiasts nationwide.
Acquisition by 2A Group LLC
On September 26, 2024, 2A Group LLC announced the acquisition of CheaperThanDirt.com, including its ammunition and shooting accessory inventory. Notably, the firearms inventory and division were not part of this acquisition, leading to the cessation of firearm sales on the platform. Jake Felde, CEO of 2A Group, stated, “We did not purchase the firearms inventory or the firearms division of the business, so that product category will not be offered on the website.” This strategic decision allows the company to focus on streamlining and enhancing other aspects of the business, particularly ammunition and shooting accessories.
Factors Influencing the Shift
Several factors contributed to Cheaper Than Dirt’s decision to discontinue firearm sales:
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Regulatory Challenges: The firearms industry faces a complex and evolving regulatory environment. Ensuring compliance with federal, state, and local laws requires significant resources and meticulous attention to detail. By focusing on ammunition and accessories, Cheaper Than Dirt can navigate a less stringent regulatory landscape.
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Public Perception and Legal Scrutiny: The company has previously faced criticism and legal challenges. In 2020, Texas Attorney General Ken Paxton demanded that Cheaper Than Dirt refund over $402,000 due to allegations of price gouging during the pandemic. Such incidents can impact a company’s reputation and operational decisions.
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Strategic Business Focus: The acquisition by 2A Group LLC, which also manages LuckyGunner.com, suggests a strategic consolidation within the shooting sports industry. By eliminating firearm sales, the company can concentrate on its core competencies, potentially leading to improved customer service and operational efficiency.
Industry Implications
The decision by Cheaper Than Dirt to cease firearm sales reflects broader trends within the firearms retail industry:
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Market Consolidation: The acquisition indicates a trend toward consolidation, with larger entities absorbing established brands to streamline operations and expand market reach.
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E-Commerce Evolution: As consumer purchasing habits shift increasingly online, retailers are adapting by focusing on products that can be sold with fewer regulatory hurdles, such as ammunition and accessories.
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Regulatory Navigation: Companies are reassessing their product offerings to align with regulatory environments, potentially reducing legal risks and compliance costs.
Conclusion
While Cheaper Than Dirt has not closed, its strategic decision to discontinue firearm sales marks a significant shift in its business model. Influenced by regulatory challenges, public perception, and strategic realignment under new ownership, the company now focuses on providing ammunition and shooting accessories. This move underscores the dynamic nature of the firearms retail industry and highlights how businesses adapt to changing landscapes to continue serving their customer base effectively.
