Here is an excellent blog explaining the issue:
And Paul Randal's Shrink Alternative:
So what if you *do* need to run a shrink? For instance, if you've deleted a large proportion of a very large database and the database isn't likely to grow, or you need to empty a file before removing it?
The method I like to recommend is as follows:
• Create a new filegroup
• Move all affected tables and indexes into the new filegroup using the CREATE INDEX ... WITH (DROP_EXISTING) ON <filegroup> syntax, to move the tables and remove fragmentation from them at the same time
• Drop the old filegroup that you were going to shrink anyway (or shrink it way down if its the primary filegroup)
