The Gunners are now without a win in six Premier League games after they were beaten 2-1 by Carlo Ancelotti’s side at Goodison Park.
Rob Holding’s own goal put Everton in front in the 12th minute before Pepe equalised from the penalty spot.
But Yerry Mina’s header just before half-time put Everton back in front and was enough to secure three points for the hosts.
Arsenal, meanwhile, struggled to create chances once again and Shearer believes Pepe’s lack of urgency to get in the opponent’s box during attacking phases of play is costing the Gunners.
‘Twelve goals [in the Premier League] all season and this is why,’ Shearer said on BBC’s Match of the Day.
‘No options and when the ball goes wide… have a look at Pepe, not prepared to get in at all, [he’s] jogging, sometimes walking.
‘He’s got to do more, he’s got to try to get on the end of it.
‘Look at Pepe on the right-hand side, quite content to sit out there.
‘He’s not bothered at all to try to break his neck to get in and get on the end of it and score goals.
‘No wonder they are not creating chances, no wonder they are not scoring goals when he’s going that sort of thing.
‘It’s not just him, there are few players in that team not giving everything for the manager.
‘They’re never going to score goals playing like that.’