It happened around 10:50 a.m. Thursday at William Glatz Jewelers in the 6400 block of Rising Sun Avenue.
Sources say two men went into the store to rob it.
That's when there was an exchange of gunfire between the robbers and Glatz, the 67-year-old owner.
Glatz was shot in the chest and rushed to Albert Einstein Medical Center where he later died.
One of the robbers was shot in the head and died at the scene.
The other robber fled and is still at large. No description of that person has been released so far. Police say he may have left the scene in a black car.
Police said they will be reviewing surveillance video for any clues.
Investigators said nothing was taken from the store and that no customers were in the store at the time of the shooting. However, there were two employees in the store at the time.
William Glatz Jewelers has been a fixture in the neighborhood for decades, long before merchants found the need to arm themselves.
"I would say about 70% of the shop owners are armed," said business owner Salvatore LaValle.
Those who knew Glatz were distraught over his violent death.
"Heartbroken. We lose another one. We had a shooting a couple of years ago where a grocer was killed," said Ken Hyers of Lawncrest Town Watch.
"We've known Bill Glatz for over 30 years. We've gone in for our wedding rings and all our jewelry," said Rick Schoeniger of Fox Chase. "Great guy, great community guy."