A customer brought two tires to the Nordstrom store in Fairbanks, Alaska, and asked for his money back. The store associate, Craig Trounce, paid him for them and took the tires. Nordstrom never sold tires. In 1975 it had bought stores from Northern Commercial, a company that did.
Nordstrom tells the story on its own website. Other companies and motivational speakers use it to inspire employees. The Fairbanks Daily News-Miner dates it to one winter day in 1979, and gives the refund as $25.