It’s incontrovertible that their recent merchandising changes have proven disastrous.
I know people who used to shop with them regularly who are extremely unhappy and simply vacated the place.
This was prior to any gay ads, though I’m sure that didn’t help.
I also did not like the gay ads, but you’re right the problems started before then. Their customer base had become accustomed to weekend coupon sales. You were never going to wean them onto an “every day low pricing” strategy. So having lost their traditional customer base, they set out after a new one (Gays and Metrosexuals) who would never be caught setting foot in JC Pennys.