New bike, faulty?

Just bought a 16in wheel silverfox from argos for my 7 year old and upon getting it home have discovered that the rear wheel seems very stiff sounds gritty as well and i can see slight movement in the chain going over the rear sproket like the axle is bent.If you cycle the pedals backwards it is even stiffer, should it be stiff when new, think ill prob put it back.
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Specialized Roubaix SL3 Expert 2012, Cannondale CAAD5,
Marin Mount Vision (1997), Edinburgh Country tourer, 3 cats!
Specialized Roubaix SL3 Expert 2012, Cannondale CAAD5,
Marin Mount Vision (1997), Edinburgh Country tourer, 3 cats!
In any case... just bought? Straight back to the store, IMHO.
If it eased off when you moved the wheel then the chain was too tight. That would cause the grindingsounds and movement in the drivetrain as the chain goes past the tight spots.
You should be able to push the chain up and down slightly in the centre, if it feels tight then you need to move the back wheel in a little. Try the chain in a few places as chains are not uniform and have tight sections and slacker sections.
If its still stiff and noisy, then take it back to the shop. Bear in mind though, that an Argos kids bike isn't ever going to be a piece of precision engineering!