Ted Baker's managing director Ray Kelvin started his first store in March 1987 in Glasgow, quickly followed by Manchester and Plymouth and Nottingham.[1] Initially Ted Baker exclusively offered men's dress shirts, and offered dry cleaning with every shirt they sold. Kelvin had limited funding available, so rather than advertise, he relied on word of mouth and the creation of a personality to anchor the brand.

As a consequence, Ted Baker grew more successful as a brand (dry cleaning was no longer offered as the label grew).

Three years later, a store in Covent Garden opened and Kelvin bought the company outright from part-owners Goldberg and Sons. Additional stores in Soho, Nottingham and Leeds opened in 1994. In 1995, Ted Baker launched a new range, Ted Baker Woman.

Ted Baker has since become a global brand, which produces men's, women's and children's clothing. The company also produces fragrances, eyewear and accessories. It sells a range of cosmetics under the name Ted Baker Bodywear; these are marketed exclusively through Boots in the UK. Ted Baker recently released two mobile phones in the UK - the Ted Baker Button and Ted Baker Needle, in association with Samsung and HTC respectively.