Touch Screen not working on Brand new iPhone 5...why?

I bought my iPhone 5 yesterday from Meteor. I had a party to go to last night so I just left the phone to charge and backed up my ld one to iTunes. This morning I plugged the 5 into laptop to start transferring data across. Everything was ok, add to re-load apps. etc. but the norm. This afternoon I went to open the phone and the touch screen just doesnt work. I've tried the re-set - holding Home and the Power button a hundred times now, no joy. I've plugged it back into i Tunes, restored it again, no joy.
My head is melted because the guy in shop was trying to put me off it in case of any issues having to send the phone to Apple but I've had the iPhone for years and have had no problems with 3GS, 4, 4s, so I was eager to stay with it. PLease tell me this is a software fix.....please.

take the phone back,

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