Lots of really great discussion here everyone! Let's break this question down from the top.
As this is a Necessary Assumption question, we need to start with a clear and concise breakdown of the core. farhadshekib has simplified it fairly well:
Premises:
If most customers take free gift wrapping --> expensive and time consuming
If few customers want free gift wrapping --> no advantage
Conclusion: No reason to offer free gift wrapping
Notice that the conclusion is a fact, and the premises are conditionals. What if those conditionals never get triggered at all? What if 40% of the customers wanted free gift wrapping? (40% is more than 'few', but less than 'most'.) We don't know anything about what happens in that scenario! If that happened, there might be a reason to offer free gift wrapping!
(E) nails this. The argument assumes one or the other of the two conditionals will get triggered. If neither occurred, and we were in some totally different scenario that we know nothing about, then the conclusion wouldn't make any sense.
Notice that there's another assumption here, that could just as easily been tested: the argument is also assuming that if something is time-consuming and expensive, that means there can't possibly be any reason to offer it. If there might be a reason to offer it, even despite that cost and time, then the final conclusion is crazy.
Not Assumed
(A) False comparison. The only reference to cost is the premise 'if most customers take the offer, it will be expensive'. There's no comparison we need to draw between this holiday season and last.
(B) Irrelevant conditional. The argument makes no reference to slowing shoppers down.
(C) False opposite. The argument is about free gift wrapping. As related as it might feel, charging for gift wrapping is actually out of scope. Negate this answer to double-check.
NEGATION: It would NOT be to the store's advantage to charge for gift wrapping.
The fact that its not an advantage to charge doesn't destroy the conclusion that there's no reason to offer it free. Maybe there's just no advantage to doing either one!
(D) The cost of informing customers is out of scope. Even if it were free to inform them, that doesn't damage the conclusion.
Remember, the first stop should always be a clear and concise breakdown of the core, and the disconnect therein!
Please let me know if you have any additional questions!
#officialexplanation