Thanks guys. I live 1800km from the shop i bought the bike from as i live remotely. I spoke to them and emailed them but they claim they spoke to giant and shown them my pictures and how it's not structural damage and its all good. The fact is that carbon has been chipped which i repeated to them multiple times. In the conversation i had with them yesterday they said how they're thinking about this and trying to find a solution and they'll get back to me. I dont think they will.
Go to giant direct.
If that doesn't yield results - see if you can find a shop who will produce and independent report (need only be a few lines on headed note paper)
Send the lot to the shop - by signed for mail (shows them you are serious)
.....if all that fails...
Approach you credit card company - tell them you have received defective goods and wish to make a section 75 claim.
And/or
Log a case with the small claims court - write to shop again with claims number ask the shop to state their lock position (ie the basis of their defence in court)
...in general get a bit nasty - name the shop on here - leave an enquiry on there FB or Twitter pages...