new kato eng not working right...any ideas?

I bought a new Kato RS-2 n-scale loco.
when on the track, the engine will not move untill over 9volts
no direction lights either when running.
Do I need to return to the LHS or is it something I can fix.
I plan to convert the eng to dcc with a digitrac decoder soon.

I’d take it back right away. Once you put the decoder in, it’s unlikely that they’ll take it back at all, and they’ll blame your decoder installation for the problem.

Either take it back to the shop, or simply call Kato Monday morning (9-4:30, Central time) and talk to customer service.