The England international was criticised for a poor performance on Sunday afternoon as the Gunners lost 3-2 to bitter rivals Manchester United at Old Trafford.
Walcott has been limited in his first-team opportunities at the north London side so far this season, starting just 15 Premier League games.
Speaking to BBC Sport on Sunday night following Arsenal’s disappointing result, former England and Newcastle United striker Shearer questioned Walcott’s development.
“We’re still asking the same questions about Theo Walcott as we were six or seven years ago: is he a centre-forward or is he a winger?” Shearer told Match of the Day 2.
“He isn’t even a regular in that Arsenal team.”
Shearer added: “He doesn’t make enough of those good runs. His biggest asset is his pace. He shouldn’t be coming to the ball all the time, he should be going the other way to ask questions of defenders.”
Walcott has scored four goals and has made two assists in 21 Premier League appearances for the FA Cup holders so far this season.
The England striker moved to the Emirates Stadium from Southampton in a big-money deal in 2006.
The former Saints forward has only netted 82 times in 332 appearances in all competitions for the Gunners during a 10-year stay at the north London side.
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