It depends on where you are in your orbit.
Specifically, it depends on where you are in the orbit relative to your periapsis when you start the burn.
Visualizing orbits is difficult at first, but a rule of thumb is that prograde or retrograde thrust raises or lowers the exact opposite point on the orbit. If you fire your thrusters retrograde, the point you're lowering the most will be the point directly across the center of the orbit from your current location.
The easy case is if you're at or nearly at your apoapsis -- at the furthest point in your orbit from the periapsis. In that case, the periapsis doesn't change, but just gets lower, you shorten your orbital period, and consequently you'll reach the periapsis faster than the ship that didn't decelerate. (For example, if the original period was 90 minutes and you're at the apoapsis, then your partner ship will take 45 minutes to get to periapsis. If you fire long enough to bring your period down to 80 minutes, you'll reach the far end in 40 and beat them by a whole five minutes.)
But if you're anywhere else in the orbit, decelerating will lower the point precisely opposite you more than any other point on the orbit, so given enough thrust, that point will become the new periapsis, leaving you nearly 180 degrees away from it. Depending on where you are in the orbit, this might mean you get there faster or slower.
For instance, assume your orbit is around 90 minutes long. Suppose you're just two minutes from periapsis when you fire: in that case, the point you're lowering will be the opposite side of the orbit, the point which was (almost) your old apoapsis. If you lower it enough, it will become your new periapsis and you won't reach it for another half-orbit, while your partner will reach their unchanged periapsis in just a couple minutes.
By contrast, if you passed periapsis twenty minutes ago, then firing retrograde will pull the periapsis towards you as it moves closer to directly across the orbit from your current point.
Now, if you consider whether you'll reach the radial where the old periapsis was before (i.e. whether a ground observer looking straight up as the "finish line" would say you passed overhead faster than your partner), then the answer is usually that you'll get there first. Dropping the orbital altitude shortens your path, so you orbit faster even though you're starting out at a lower speed. However, I believe in the aforementioned scenario where you're nearly at the periapsis already when you fire, slowing your orbital speed means the other ship gets there first (and then you'll catch up and get ahead once you start down your newly eccentric orbit and get the benefit of the shorter distance). Over a a short enough distance, the curvature of the orbits is negligible, so it would function more like earthly physics and slowing down means you get there slower.
(If you're interested, I can recommend Kerbal Space Program as a fantastic way to get a handle on the physics of movement in orbit. While it's tuned more for fun than realism, the orbital physics is good enough, and you can set up scenarios like this to try them out for yourself.)