Brief Summary
In the 1970s, a customer returned a set of used tires to a Nordstrom store in Fairbanks, Alaska. The store accepted the return, even though Nordstrom never sold tires, because the location used to be a different retailer.
This story became part of Nordstrom’s brand legend, representing exceptional service. However, it also highlights the importance of boundaries in customer experience strategies.
Company Involved
Marketing Topic
- Customer Experience
- Branding
- Company Culture
Public Reaction or Consequences
The story spread through business books, service training programs, and company folklore. Many praised Nordstrom for putting the customer first. The tire itself is displayed in Nordstrom’s flagship store in New York City. While it earned admiration, it also raised questions about where a company should draw the line in meeting customer requests.
Why It Matters Today
• Highlights how brand legends can shape perception over decades
• Reminds marketers that every story sets a precedent
• Shows the risk of viral anecdotes becoming unrealistic expectations
• Relevant in today’s culture of transparency, reviews, and employee autonomy
3 Takeaways
- Service stories can build brand equity that lasts for decades
- Employees should be empowered, but also trained to use sound judgment
- Legendary moments should inspire culture, not override policy and reason
Notable Quotes and Data
- “We are known for our policy that we take everything back … but it boils down to the customer and how we take care of them” — Pete Nordstrom
- “He called a local Firestone dealer to determine a fair price and gave the customer a refund” — Jeff Toister, customer service consultant
- “Yes, this is a true story” — Seattle Refined
Full Case Narrative
In the mid-1970s, Nordstrom acquired a location in Fairbanks, Alaska that had previously operated as a department store selling everything from clothing to car tires. Some time after the acquisition, a customer walked in to return a pair of worn tires. Although Nordstrom never sold tires, a young associate named Craig Trounce honored the request. He called a local Firestone dealer, calculated a fair refund, and processed the return for about 25 dollars.
Rather than being reprimanded, Trounce was praised for delivering excellent customer service. The story was later confirmed and celebrated by Nordstrom executives, including Pete Nordstrom on the company’s podcast. The tire return became a symbol of Nordstrom’s customer-first mentality and was shared widely in management seminars and business books.
Still, the story is not just about generosity. It raises an important question for marketers and company leaders: what happens when legendary moments create unrealistic expectations? Nordstrom has continued to promote autonomy within clear service standards. The tire story lives on, but the brand does not promise to accept all outlandish requests. The goal is thoughtful service, not boundless concessions.
Timeline
- Mid-1970s: Nordstrom acquires Fairbanks, Alaska location from a previous retailer
- Late 1970s: Customer returns tires, associate refunds ~$25
- 2010s–2020s: Story is confirmed by executives and displayed in stores
What Happened Next?
Nordstrom embraced the story as part of its brand identity, using it in employee training and customer engagement. The tire became a literal and symbolic display in stores. Internally, Nordstrom continued to encourage service with discretion. The company now balances generous service with realistic guidelines to avoid being taken advantage of.
One Sentence Takeaway
Exceptional customer service can define a brand, but only when supported by thoughtful boundaries and clear expectations.
Sources and Citations
The Nordy Pod: The Truth About Nordstrom’s Legendary Tire Story
The man behind Nordstrom’s famous “tire story” – Axios
Is the Nordstrom ‘tire refund’ legend real? We have answers!
How to use inspiring stories to grow your service culture – Jeff Toister