A surgical stapling instrument includes an anvil defining a plurality of staple forming pockets, and a stapling head assembly, and a retracting assembly. The stapling head assembly includes a body, a coupling member capable of actuating the anvil, a deck surface, a staple driver assembly, and a knife member. The staple driver assembly actuates through a first firing stroke and a second firing stroke. In the first firing stroke, the staple driver assembly drives a plurality of staples against the staple forming pockets. In the second firing stroke, the staple driver actuates distally past the deck surface. The knife member includes a cutting edge that can sever tissue during the first firing stroke while remaining in a retracted position that is proximal relative to the staple deck surface during the second firing stroke. The retracting assembly can drive the knife member into the retracted position during the first firing stroke.